CenterPoint Gets OK for $425M Pipeline

CenterPoint Energy Gas Transmission Company yesterday received a certificate from the Federal Energy Regulatory Commission to build and operate a natural gas pipeline from Carthage, Texas to the company’s Perryville Hub in northeast Louisiana. This pipeline, expected to be in service in the first quarter of 2007, will provide market access for growing production from east Texas and north Louisiana through interconnects with interstate and intrastate pipelines serving the East Coast, Midwest and Southeast U.S. markets. CEGT is an indirect, wholly-owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc.

“We’ve successfully completed all the FERC requirements while balancing the needs of the environment and concerns of the landowners along the right-of-way,” said Cy Zebot, chief commercial officer of CenterPoint Energy’s pipelines group. “While we are still reviewing the details in the FERC order, we do not anticipate any significant issues that would prevent us from starting construction promptly. We’re ready to meet our commitment to our customers and get more natural gas to markets where it will be needed not only this winter but in the future.”

The $425 million, fully subscribed 172-mile, 42-inch pipeline will be built in two phases and have the capacity to transport approximately 1.2 billion cubic feet per day. Phase one will consist of nearly one billion cubic feet per day and the remaining capacity in phase two will go into service in the summer of 2007. Based on strong market interest, the company anticipates a third phase of construction, subject to FERC approval, which would expand the pipeline capacity to 1.5 billion cubic feet per day by the end of 2007.

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, and pipeline and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $16 billion. With about 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years.

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