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EL PASO NATURAL GAS COMPANY TO CONSTRUCT PIPELINE EXPANSION TO SERVE SAMALAYUCA POWER PLANTS IN MEXICO

 EL PASO, March 18 /PRNewswire/ -- El Paso Natural Gas Company (NYSE: EPG) filed an application with the Federal Energy Regulatory Commission seeking authorization to construct and operate a $57 million pipeline expansion principally to serve the existing Samalayuca Power Plant and its planned expansion (Samalayuca II) located approximately 30 miles south of Ciudad Juarez, Mexico. EPG's 36 mile, 24-inch diameter pipeline expansion, termed the Samalayuca Lateral Expansion Project, will provide up to 300 million cubic feet per day (MMcf/d) of firm and interruptible transportation to Mexico with approximately 175 MMcf/d serving the Samalayuca Power Plants.
 "This expansion will dramatically enhance gas service to Mexico," said Bill Wise, president and chief executive officer of EPG, "since it will directly connect vast gas resources in New Mexico and west Texas with Pemex's pipeline system. We are particularly pleased with this expansion because it will greatly benefit our immediate neighbor, Ciudad Juarez and the State of Chihuahua, Mexico, providing clean-burning natural gas and much needed electrical power from the Samalayuca plants."
 Last year, EPG announced plans to expand its facilities near Yuma, Ariz. to provide service to the states of Baja California Norte and Sonora, Mexico. EPG anticipates significant growth in demand for natural gas in Mexico along the U.S. Border. Much of this growth is related to Mexico's aggressive plans to expand its power generation capabilities while meeting rigorous environmental standards.
 El Paso Natural Gas Company owns and operates one of the nation's largest field and mainline natural gas transmission systems, connecting natural gas supply regions in New Mexico, Texas, Oklahoma and Colorado to markets in California, Nevada, Arizona, New Mexico, Texas and Mexico.
 -0- 03/18/93
 /CONTACT: Norma F. Dunn, director - media and investor relations of El Paso Natural Gas Company, 915-541-5443/
 (EPG)


CO: El Paso Natural Gas Company ST: Texas IN: OIL SU:

AH -- NY039 -- 7475 03/18/93 12:03 EST
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Publication:PR Newswire
Date:Mar 18, 1993
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