Houston, Texas, September 16, 1997 -El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that it has signed a joint development agreement with Companhia Paranaense de Energia (COPEL), Petrobrás Distribuidora S.A. (BR), BHP Power Inc., and British Gas of Brazil (BG) to build a 440-megawatt (MW) natural gas-fired thermoelectric power plant in the state of Paraná, Brazil.

The thermal power plant, located in Araucária, a city close to Curitiba, will be built in two phases. The first phase will provide 300 MW of power and is expected to be in service by 1999. The 140 MW second phase will be operational in the year 2000. The electricity will be purchased by COPEL, an integrated electric utility providing generation, transmission, and distribution of electricity to all regions of the state of Paraná.

The plant will be fueled by natural gas provided from the Bolivia to Brazil pipeline. Construction on the plant is expected to begin during the second quarter of 1998 and the first phase is expected to coincide with the startup of the $2 billion Bolivia to Brazil pipeline, of which El Paso Energy International is a partner.

"This represents another significant milestone in El Paso Energy's effort to establish a major energy presence in Brazil," said John Hushon, president of El Paso Energy International. "This plant increases our participation in power projects in Latin America to more than 2,500 megawatts with plans to add even more by year's end. Brazil is a key element in our Latin American strategy because it's one of the fastest growing markets on the continent."

El Paso Energy Corporation provides total energy solutions through five business units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, El Paso Field Services Company, El Paso Energy Marketing Company and El Paso Energy International Company. With offices worldwide, the company has operations in interstate natural gas transmission, gas gathering and processing, energy marketing, and international energy infrastructure development.

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.