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El Paso Corp Reaches Agreement with FPL Group


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Subsidiaries of El Paso have reached an agreement with an affiliate of FPL Group, whereby FPL Group Resources has an option to purchase the development rights of the High Rock liquefied natural gas facility on Grand Bahama Island. In addition, FPL Group Resources has obtained an option to purchase a 50 percent equity interest in the proposed Seafarer pipeline system that will transport natural gas from the proposed Bahamas LNG facility to Southern Florida. Terms of the agreements were not disclosed.

The Seafarer pipeline route has been modified to eliminate the extension from a proposed interconnection with Florida Gas Transmission (FGT) in West Palm Beach to Martin County. The pipeline route originates at the proposed LNG facility on Grand Bahama Island and continues to the Exclusive Economic Zone boundary approximately 87 miles away. The pipeline will continue approximately 35 miles and make landfall at Riviera Beach Power Plant and continue onshore for nearly six miles along existing utility and roadway corridors and connect into the existing FGT system. The 128-mile, 26-inch diameter Seafarer pipeline system will have a design capacity of approximately 750 million cubic feet per day and is expected to be in service by 2008.

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