HOUSTON, June 14 /PRNewswire-FirstCall/ -- CenterPoint Energy Gas Transmission Company (CEGT), an indirect, wholly-owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), announced today the start of a non-binding, three-week open season to gauge market interest in an additional expansion of its nearly 1.9 billion cubic feet per day, 42 inch Carthage to Perryville (Line CP) pipeline. This expansion would support growing volumes of gas produced from the Haynesville shale for delivery into the Perryville Hub and to Carthage area delivery points.
"Growing demand and expressions of interest due to prolific natural gas production volumes, as well as forecasts from the Haynesville area in north Louisiana and east Texas leads us to believe that there's an opportunity to expand Line CP," said Cy Zebot, senior vice president and chief commercial officer for CEGT. "Assuming adequate expressions of interest, we're prepared to execute binding precedent agreements and seek necessary governmental authorizations to place expansion capacity into service as early as the fourth quarter of 2012."
Potential expansion of Line CP could provide incremental supplies access to the interstate pipelines serving the Midwest and Northeast by utilizing CEGT's Perryville Hub(SM) services where there could be interconnectivity and direct access to new storage facilities being developed near the Perryville Hub and Delhi, La. The expansion could also provide incremental supplies access to markets in the Southeast, through the Southeast Supply Header. Additionally, CEGT will evaluate options for deliveries and interconnectivity of natural gas to Carthage, which will provide Haynesville shale producers access to Texas markets.
The specific facilities required will be a function of the location and volume level commitment of potential supply sources. Final pricing determinations will be based on the facility costs, the level of firm commitments and the amount of interest indicated in accessing downstream interstate pipelines.
Written indications of interest should be received by 4 p.m. CDT on June 18, 2010. For questions, please contact Bryan Ginsburg, senior director business development, at 713-207-5166 or via email at email@example.com or Kathy Kennedy, business development manager, at 713-207-5189 or via email at firstname.lastname@example.org. For additional information, visit the CEGT Web site at pipelines.centerpointenergy.com/cegt.html.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total nearly $20 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the Web site at www.CenterPointEnergy.com.
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative, and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the fiscal year ended December 31, 2009, CenterPoint Energy, Inc.'s and its subsidiaries' Form 10-Qs for the quarterly period ended March 31, 2010, and other filings with the Securities and Exchange Commission.
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SOURCE CenterPoint Energy, Inc.