HOUSTON, TEXAS, June 12, 1997-Epic Energy Pty Ltd (Epic) has been selected to construct, own and operate a pipeline and compressor expansion project which will deliver natural gas from Australia's Northwest Shelf to Geraldton, Western Australia, a distance of about 932 miles.

Epic is an integrated energy joint venture among El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), CNG International Corporation, a subsidiary of Consolidated Natural Gas Company (NYSE:CNG), and various Australian interests.

The pipeline project will expand the existing Alinta Gas Dampier Bunbury pipeline through looping and installing additional compression at an estimated cost of US$250 million. The increased capacity will be used to supply gas to the planned US$1.1 billion An Feng Kingstream Mid West Iron and Steel plant in Western Australia. The project will also fuel the independent gas-fired power station which will provide electricity for the steel manufacturing process. Initial gas deliveries are expected in late 1999. Full operation daily gas deliveries are expected to reach roughly 161 MMcf/d shortly thereafter.

"The award of the Kingstream project to Epic represents a recognition that Epic is the preferred natural gas pipeline operator in Australia," said John Hushon, president of El Paso Energy International Company. "It's also a restatement of Epic's determination to maintain and build its status as a major integrated energy company in the entire Australian market."

Epic currently owns and operates 1,740 miles of natural gas pipeline systems in Queensland, Australia, and South Australia making it one of the largest pipeline operators in Australia. Epic is also developing several additional pipeline and power projects in Australia.

El Paso Energy Corporation provides total energy solutions through four business units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, El Paso Energy Resources 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.