El Paso Pipeline Partners, L.P. (NYSE: EPB) announced today that it has completed the acquisition of an additional 18-percent interest in Colorado Interstate Gas Company (CIG) from El Paso Corporation (NYSE: EP) for approximately $215 million. The acquisition increases El Paso Pipeline Partners' interest in CIG to 58 percent.

"We are pleased to announce the partnership's second acquisition from El Paso Corporation, which is immediately accretive to distributable cash flow," said Jim Yardley, president and chief executive officer for the general partner of El Paso Pipeline Partners. "The acquisition increases our interest in CIG's well-positioned assets with strong cash flows and organic growth opportunities."

Recently, El Paso Pipeline Partners issued 12.65 million units, which raised cash proceeds of approximately $217 million. The partnership used the equity issuance proceeds to fund the transaction.

Management intends to recommend to the Board of Directors of the general partner an increase in the quarterly cash distribution to $0.35 per unit, or $1.40 per unit on an annualized basis, beginning with the distribution to be declared and paid in the fourth quarter 2009. This represents an increase of 6 percent from the announced second quarter 2009 quarterly rate of $0.33 per unit and an increase of 22 percent above the partnership's original minimum quarterly distribution rate.