Press Releases
NJR Energy Services to Market Stagecoach Gas Storage Project
August 16, 2000- Houston, TX
– eCORP Marketing, L.L.C. ("eCORP Marketing"), a subsidiary of eCORP HOLDING, L.L.C. ("eCORP"), announced today that it has entered into an agreement with NJR Energy Services Company ("NJRES"), a subsidiary of New Jersey Resources Corporation (NYSE: NJR), under which NJRES will provide storage marketing, transportation management, and gas trading services to eCORP Marketing in connection with the Stagecoach Natural Gas Storage Project in Tioga County, New York.
Central New York Oil & Gas Company, L.L.C. ("CNYOG"), a separate eCORP subsidiary, is seeking permission from the Federal Energy Regulatory Commission ("FERC") to build the Stagecoach Project as a high-performance underground natural gas reservoir storage facility. The Stagecoach Project is designed to provide multiple cycles with high rates of injection and withdrawal. Pursuant to an open season conducted by CNYOG, eCORP Marketing was awarded the firm storage capacity to be developed in Stagecoach.
In order to provide transportation service to the Stagecoach Project, Tennessee Gas Pipeline Company ("Tennessee"), an affiliate of El Paso Energy Corporation (NYSE: EPG) is seeking FERC permission to build a lateral pipeline connecting the Stagecoach Storage Field to Tennessee’s 300 Line at a point in Bradford County, Pennsylvania. Tennessee is also seeking permission to expand the capacity of its 300 Line. In an open season conducted by Tennessee for the lateral line and 300 Line expansion capacity, eCORP Marketing was awarded firm transportation capacity to be developed by Tennessee.
eCORP Marketing has entered into a natural gas storage marketing and management agreement with NJRES, under which NJRES will manage on behalf of eCORP Marketing the bundled and unbundled marketing of storage and transportation services available from the Stagecoach Project and the Tennessee Stagecoach Expansion Project. Under the agreement, NJRES will also manage gas-trading activities for eCORP Marketing’s account.
Under an alliance formed in 1995 with NJRES and Energy Venture Analysis, Inc., an Arlington Virginia-based energy consulting firm, eCORP has begun to develop a network of strategically located mid-stream energy assets including high-performance storage facilities, pipelines and electric power plants. The Stagecoach Project is expected to begin operation in the summer of 2001.
"As energy markets become more competitive, it is important to have marketing expertise and capabilities that extend beyond just effectively trading off price screens. We wanted a marketing partner that has the ability to also create marketing opportunities with new strategic assets," said Dr. John F. Thrash, President and CEO of eCORP. Dr. Thrash further stated, "Over the last five years, NJRES has distinguished itself as a premier marketing organization. NJRES possesses an outstanding knowledge of the markets that will be served by Stagecoach, which has been consistently demonstrated by the earnings that the marketing group contributes to NJR. eCORP is very pleased to formalize NJRES’s commitment to the success of the Stagecoach Project with this marketing agreement."
"The Stagecoach Project represents a new class of high-performance storage that will play an important role in meeting the new demands being placed on the northeast gas markets. It is a great compliment to our business, and NJRES looks forward to working with eCORP Marketing on this significant infrastructure addition to the northeast market," said Laurence M. Downes, Chairman and CEO of NJR.
Another eCORP affiliate, Twin Tier Power, L.L.C., is seeking permission from the New York Public Service Commission to build a 520 Megawatt gas fueled power generation plant. The Twin Tier Power Project will be located on the Lounsberry Industrial Site also in Tioga County, New York approximately 4 miles from the Stagecoach Project. CNYOG plans, as part of the Stagecoach Project, to build a pipeline directly connecting the power plant and Lounsberry Site to the storage project. "Twin Tier will be important in helping the State of New York meet its growing electric demand. The combination of Twin Tier and Stagecoach will produce one of the most reliable power generation facilities in the State," said Steve Thumb, of EVA.
"Tennessee is proud to have been selected as the pipeline to serve the Stagecoach Natural Gas Storage Project," said Stephen C. Beasley, President of Tennessee Gas Pipeline Company. "Our supply and market access adds to the value of the field while the deliverability of the field enhances our capabilities to serve growth markets, especially in power generation."
NJR Energy Services is a subsidiary of New Jersey Resources Corporation (NYSE: NJR). New Jersey Resources provides retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England. Its principal subsidiary, New Jersey Natural Gas Company (NJNG), is one of the fastest-growing local distribution companies in the U.S., providing energy services and maintenance of appliances and heating and cooling systems to more than 400,000 customers in New Jersey’s Monmouth and Ocean counties and parts of Morris and Middlesex counties. NJNG is also a leader in off-system sales and capacity release markets. For more information about NJR, visit their Web site at www.njresources.com.
With over $19 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy International Company, El Paso Field Services Company, and El Paso Production Company. The company owns North America’s largest natural gas pipeline system, both in terms of throughput and miles of pipeline, and has operations in natural gas transmission, merchant energy services, power generation, international project development, gas gathering and processing, and gas and oil production. On May 5, the stockholders of both El Paso Energy and The Coastal Corporation overwhelmingly voted in favor of merging the two organizations. The combined company will have assets of $35 billion and be one of the world’s leading integrated energy companies. The merger is expected to close in the fourth quarter of this year, concurrent with the completion of regulatory reviews. Visit El Paso Energy’s web site at www.epenergy.com.
eCORP is a diversified energy company involved in the development of strategic energy assets including underground natural gas storage, power generation and natural gas pipelines. For further information about eCORP please visit us at our web site at www.ecorpusa.com or call eCORP’s Business Development Officer, Steve Clifton at 713-520-0993.
This Press Release contains certain-forward looking statements regarding the intent, belief and current expectations of the company’s management. Although the company believes that the expectations in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct and assumes no obligation to update any forward-looking statements.