HOUSTON, June 22 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP) today announced that its Western Pipeline Group plans to develop a new underground natural gas storage facility near Eloy, Arizona. The facility will bring much needed storage capacity to Arizona -- helping to meet rapidly growing demand for clean-burning natural gas and to ensure the reliability of Arizona's energy supplies well into the 21st century.

Plans call for the Arizona Natural Gas Storage project to be located in a currently unincorporated area about 40 miles southeast of Phoenix. The location is particularly well suited to ensure steady natural gas supplies to meet the increasing heating and electricity generation needs of Arizona's growing economy.

Based on customer demand and final determination of geologic suitability, the project could consist of four underground salt caverns capable of storing approximately 3.5 billion cubic feet of natural gas. The facility would be able to deliver 350 million cubic feet of natural gas per day, enough to meet the electric energy needs of 735,000 homes on a daily basis. The storage caverns will support nearby pipelines, ensuring reliable delivery of natural gas to power plants and other customers in the region.

"Arizona is predicted to be one of the top five fastest-growing states in the nation during the next 30 years," said James J. Cleary, president of El Paso's Western Pipeline Group. "That growth will increase demand for energy to sustain economic development in the state, and natural gas storage is one of the most efficient, low cost and least environmentally disruptive ways to provide that energy to meet the needs of consumers.

"The Arizona Natural Gas Storage project, with its high deliverability and centralized location, will support the reliability of natural gas services for Arizona and the region for many years to come," Cleary said.

El Paso is the largest operator of natural gas storage in the United States and has safely operated storage facilities across the United States since the 1940s to meet energy demand in major natural gas markets. The Arizona Natural Gas Storage project will include state-of-the-art safety and efficiency features, such as remote emergency shutdown capabilities, below surface shutoff valves, gas-leak detection and alarms, and advanced fire detection and suppression technology.

El Paso expects to file an application for project approval with the Federal Energy Regulatory Commission in the third quarter of 2007. Subject to federal and state regulatory approvals, construction could begin in 2008. The company estimates the first cavern will be in service by mid-2010 and the remaining three caverns by 2011-2012.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com .

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, our ability to successfully design, construct and operate the gas storage project described in this release; our ability to obtain favorable governmental approvals for this project; competition; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings.

While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward- looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE El Paso Corporation