The South Texas Expansion will enable Tennessee to deliver an incremental 320,000 dekatherms per day to the rapidly growing power generation market in northern Mexico. The South Texas Expansion Project will include a new, 9.3-mile, 30-inch diameter lateral extending from Tennessee's system in Hidalgo County, Texas to the international border between the United States and Mexico. The project will also include seven miles of new, 24-inch diameter pipeline loop along Tennessee's Donna Line and a new compressor station, both located in Hidalgo County. The total cost for the new lateral pipeline project is an estimated $39.8 million, and service is scheduled to begin August 1, 2003. Tennessee has entered into binding contracts with transportation customers in the United States and Mexico representing power producers and marketing companies that have subscribed in full to the new pipeline's capacity.

"This project continues Tennessee Gas Pipeline's commitment to providing its customers access to new growth markets along our natural gas pipeline system," said Stephen C. Beasley, president of Tennessee Gas Pipeline. "Our initial interconnect into Mexico installed in 1999 enabled natural gas shippers to access this growing market, and this expansion will provide additional opportunities as power generation, commercial, and industrial applications proliferate throughout the northern Mexico region."

The El Paso Corporation model -- strong in assets, market expertise, valuation skills, and risk discipline -- has proven itself year after year, resulting in a company with both financial strength and a reputation for integrity. El Paso has core businesses in natural gas production, gathering and processing, and transmission, as well as in international project development, energy financing, power generation, liquefied natural gas transport and receiving, and merchant energy services. The company is committed to developing new energy sources and technology to supply energy to communities around the world. For more information, please visit www.elpaso.com .

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the company's (and its affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.

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CONTACT:          Communications & Government Affairs, Norma F. Dunn, Senior Vice
                  President, +1-713-420-3750, or fax, +1-713-420-3632, or Investor Relations,
                  Bruce L. Connery, Vice President, +1-713-420-5855, or fax, +1-713-420-4417,
                  both of El Paso Corporation
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