CORRECTED - PG&E pulls out of El Paso's Ruby pipeline project

(Fixes spelling of CEO's surname to Darbee throughout)

LOS ANGELES, May 6 (Reuters) - California utility company PG&E Corp (PCG.N: Quote, Profile, Research) said Tuesday it pulled out of El Paso Corp's (EP.N: Quote, Profile, Research) Ruby pipeline project, a proposed 680-mile natural gas pipeline running from Wyoming to Oregon, due to soaring costs.

"We frankly could not see the cost projections coming in at the projected level, so we exercised our option to pull out of the Ruby pipeline," PG&E Chief Executive Peter Darbee said on a conference call with analysts.

PG&E said in December it would buy a 25.5 percent stake in the project.

Darbee added that the company was considering other options for accessing natural gas in the Rocky Mountain region, and was not concerned about meeting its natural gas supply requirements.

"We're not concerned about a shortage of gas," Darbee said. (Reporting by Nichola Groom; editing by Jeffrey Benkoe)