HOUSTON, TEXAS, July 1, 1997-El Paso Field Services Company, a business unit of El Paso Energy Corporation (NYSE:EPG), today announced the execution of long term agreements with Burlington Resources Inc., Amoco Production Company and Conoco Inc., three of its major natural gas producers in the San Juan Basin, providing for new global compression services to reduce field delivery pressures and increase production by an estimated 130 MMcf/d.

This $50 million project includes the installation of approximately 36,000 horsepower of new field compression and construction of an additional 56 miles of pipeline system. Work is scheduled to be completed by mid-1998.

El Paso Field Services, the largest gatherer of natural gas in the San Juan Basin with throughput of more than 1.0 Bcf/d, will install 10 new compressor units at five separate locations on its 5,500 mile system. These additional units will lower average wellhead pressures to 150 pounds per square inch gauge (psig) on 70 percent of its high pressure gathering system, affecting approximately 3,000 wells. Additionally, the majority of the increased volumes will be delivered to El Paso's Chaco Cryogenic Processing Plant which processed an average of 472 MMcf/d in the first quarter of 1997.

"This project represents a cooperative effort by El Paso and its largest producers to extend the productive life of the San Juan Basin natural gas reserves through this innovative global compression service," said Robert G. Phillips, president of El Paso Field Services. "By installing centralized compression and adding strategic looping to the existing gathering systems, we can increase production for the three companies associated with today's agreements as well as many other producers in the Basin. At the same time, we will improve the operating efficiency of our gathering and processing services. It's a win-win situation."

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.