HOUSTON, TEXAS, July 3, 1997-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced that the Federal Energy Regulatory Commission (FERC) has approved a $24 million, 7.5 mile pipeline project that will provide a new supply of gas to the New England region. The project, proposed by Tennessee Gas Pipeline Company last year, will connect Distrigas of Massachusetts' Everett-based facility to Tennessee's existing pipeline system.

The FERC decision, issued on June 25, outlines a set of environmental and construction mitigation measures that will ensure minimal impact to communities along the pipeline route including Everett, Malden, Revere and Saugus.

"We are pleased with the Commission's decision and look forward to working with officials, citizens, and neighborhood groups from each of the municipalities along the project route. Tennessee Gas Pipeline Company is fully committed to safety and the environment," said John W. Somerhalder II, president of Tennessee Gas Pipeline Company.

Jane Michalek, vice president for Distrigas of Massachusetts, said, "We have been supplying natural gas to New England since 1971. This project will enable us to supply additional, much needed energy to satisfy our customers throughout our area. Our commitment to providing safe, environmentally friendly energy will play an important part in our region's future."

The project is expected to be in service by November 1998.

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.

Distrigas of Massachusetts Corporation (DOMAC), a subsidiary of Cabot LNG Corporation and Cabot Corporation (NYSE:CBT), imports and distributes liquefied natural gas (LNG) through its marine terminal in Everett, MA to meet the specialized needs of gas and electric utilities, independent power producers, energy marketers and industry throughout the Northeast.

Contacts

Distrigas:
Jane Michalek
(617) 526-8333

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.