HOUSTON, April 24, 2008 (PRIME NEWSWIRE) -- 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 two non-binding, 31-day open seasons to gauge market interest in new interconnect and interstate pipeline facilities to connect growing supplies of natural gas in the Fayetteville Shale in northeast Arkansas to existing interstate facilities that provide access to markets in the midwest and northeast.
CEGT is soliciting market interest in subscribing to firm transportation capacity in either of its proposed Friendship or Searcy Laterals. The Friendship Lateral would be built from the terminus of CEGT's Line J located in northeastern Arkansas, to potential interstate pipeline receipt/delivery points with Texas Gas Transmission's Zone 2 and Trunkline Gas Company's Zone 2b, both located in western Tennessee, near the town of Friendship. The Searcy Lateral would provide firm backhaul service for Fayetteville producers to move their natural gas in eastern White County, Arkansas into Texas Gas Transmission's to-be-built, 36" Fayetteville Lateral at a point near Searcy.
CEGT believes the Friendship and Searcy Laterals will offer mid-continent producers unparalleled market access at competitive netback prices, as well as the ability for consumers and marketers to access growing, competitively-priced supplies, with deliveries into pipelines serving the midwest and northeast markets.
"We believe the combination of these two projects, coupled with the strategic location of our existing infrastructure, positions us well to offer the marketplace unparalleled access to this new shale play," said Cy Zebot, CEGT's senior vice president and chief commercial officer. "Pending market interest, our plan is to execute binding precedent agreements, and place the Searcy Lateral in service by the first quarter of 2009 and the Friendship Lateral in service by third quarter 2010."
Written indications of interest in either or both projects should be received by CEGT by 5:00 p.m. CDT on May 24, 2008. For questions, please contact Kevin Holder, Director Business Development and Project Manager at 713.207.5166, kevin.holder@CenterPointEnergy.com, or Mike Joyce, Director, On-System Marketing at 713.207.5114, mike.joyce@centerpointenergy.com. 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 over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.
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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 period ended December 31, 2007, and other filings with the Securities and Exchange Commission.