HOUSTON, Sept. 22 /PRNewswire-FirstCall/ -- Cheyenne Plains Gas Pipeline Company, a subsidiary of El Paso Corporation (NYSE: EP), announced today that, subject to Federal Energy Regulatory Commission (FERC) approval, it plans to use 36-inch diameter pipe rather than 30-inch pipe as originally proposed in its application to FERC on May 20, 2003, for the Cheyenne Plains pipeline -- a 380-mile natural gas pipeline that will extend from Cheyenne, Wyoming to Greensburg, Kansas.

The plan to increase the size of the pipeline is due to significant customer response to an additional open season following the Cheyenne Plains FERC application. Cheyenne Plains will seek authorization from FERC to increase the capacity from its initial design of 560 thousand dekatherms per day (Mdth/d) to at least 730 Mdth/d, and to place the additional capacity in service within a year after the Cheyenne Plains pipeline initially goes in service. The project is backed by 560 Mdth/d of firm contracts with terms of 10 years or longer from 14 shippers and has additional 10-year contractual commitments supporting the expansion up to 730 Mdth/d.

The original capital cost included in the FERC application for the 30-inch pipeline project was approximately $336 million. The estimated capital cost associated with the 730-Mdth/d project is $425 million.

"Constructing Cheyenne Plains as a 36-inch diameter pipeline will allow the pipeline to expand competitively with incremental compression up to a potential capacity of 1.7 billion cubic feet per day," said Patricia A. Shelton, president of El Paso's Western Pipeline Group. "We feel that Cheyenne Plains will be ready to add capacity to markets in the Midwest, with minimum environmental and landowner impact, as new supply develops in the Rockies."

Although the change in diameter will require Cheyenne Plains to amend its current certificate filing with the FERC, it is not anticipated that the in- service date of the Cheyenne Plains pipeline will be affected. "We currently remain ahead of schedule and are optimistic that the Cheyenne Plains Pipeline will be in service in early 2005," Shelton added.

El Paso Corporation is the leading provider of natural gas services and the largest pipeline company in North America. The company has core businesses in pipelines, production, and midstream services. Rich in assets, El Paso is committed to developing and delivering new energy supplies and to meeting the growing demand for new energy infrastructure. For more information, 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, including, without limitation, the successful implementation of the 2003 operational and financial plan; the successful implementation of the settlement related to the western energy crisis; actions by the credit rating agencies; the successful close of financing transactions; our ability to successfully exit the energy trading business; our ability to divest of certain non-core assets; changes in commodity prices for oil, natural gas, and power; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; political and currency risks associated with international operations of the company and its affiliates; inability to realize anticipated synergies and cost savings associated with restructurings and divestitures on a timely basis; difficulty in integration of the operations of previously acquired companies, competition, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE  El Paso Corporation
    -0-                             09/22/2003
    /CONTACT:  Communications and 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/
    /Web site:  http://www.elpaso.com /
    (EP)

CO:  El Paso Corporation; Cheyenne Plains Gas Pipeline Company
ST:  Texas, Wyoming, Kansas
IN:  OIL
SU:



CT-AP 
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5386 09/22/2003 13:55 EDT http://www.prnewswire.com