Dominion and Exterran Holdings Announce Agreement for Two Natural Gas Processing Plants in Appalachian Basin

RICHMOND, Va. and HOUSTON, April 20 /PRNewswire-FirstCall/ -- Dominion (NYSE: D), one of the nation's largest energy producers, and Exterran Holdings, Inc. (NYSE: EXH), a premier provider of oil and natural gas processing and compression services, will team up to provide increased natural gas processing in the Appalachian Basin.

Under an agreement signed by the companies, two natural gas processing plants will be designed, built and installed by Exterran. One will be an 8 million cubic feet per day capacity plant in Carlisle, Ohio, and the other a 10 million cubic feet per day capacity plant in Schultz, West Virginia. The two plants will be owned and operated by Exterran under a twelve-year services agreement with Dominion.  Construction is expected to begin immediately. Commercial operation of the Carlisle plant is anticipated in January 2011 and commercial operation of the Schultz plant is anticipated in May 2011.

The Carlisle plant is expected to allow more local natural gas to be processed and delivered into the Dominion East Ohio local natural gas distribution system. The Schultz plant is expected to allow more local natural gas to be produced into Dominion's gathering system in West Virginia, processed, and then delivered to market through Dominion Transmission's interstate pipeline system.  

"Growing local production calls for increased processing equipment in the Appalachian Basin," said Paul Ruppert, senior vice president of Dominion Transmission. "These projects will benefit both local producers and the local economy.  The two new state-of-the-art processing plants will provide high quality natural gas for consumers and will also produce a variety of natural gas liquids valued in the market today."

"We are excited about expanding our relationship with Dominion in the Appalachian Basin, where we have been operating for over 30 years," said Brad Childers, President, North America of Exterran.  "We are optimistic about growth opportunities in this key energy market particularly due to increased industry activity associated with the Marcellus Shale and our long-established presence in the area."  

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 12,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines.  Dominion operates the nation's largest natural gas storage system with 942 billion cubic feet of storage capacity and serves retail energy customers in 12 states. For more information about Dominion, visit the company's Web site at www.dom.com.

Exterran Holdings, Inc. is a global market leader in full service natural gas compression and a premier provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. Exterran Holdings serves customers across the energy spectrum -- from producers to transporters to processors to storage owners. Headquartered in Houston, Texas, Exterran and its over 10,000 employees have operations in over 30 countries.

For more information, visit www.exterran.com.

All statements in this release other than historical facts are "forward-looking statements" as defined by federal law. Although the companies believe any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the companies' periodic reports filed with the Securities and Exchange Commission.

SOURCE Dominion; Exterran Holdings