HOUSTON, TEXAS, June 4, 1997-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation (NYSE:EPG), and MCN Investment Corporation (MCNIC), a subsidiary of MCN Energy Group Inc. (NYSE:MCN) today announced plans to form a joint venture to build a liquefied natural gas (LNG) facility on the Delmarva Peninsula, near Delaware's border with Maryland.

The new venture, Continental States Peaking Services L.L.C., will be equally owned by Tennessee Gas and MCNIC. The proposed $40 to $50 million project would provide liquefaction, storage and vaporization services beginning in early 2000. The Continental States facility would be directly connected to the Eastern Shore Natural Gas pipeline system, with access to the Transcontinental Gas Pipe Line and Columbia Gas Transmission systems. Several nearby satellite LNG storage facilities also could be supplied by this facility.

"This project offers a choice of high-value services to our Northeast customers," said John Somerhalder, president of Tennessee Gas Pipeline Company. "Pipeline capacity into this region is severely constrained during the peak winter months, but generally available in the warmer months. The Continental States facility will allow customers to store lower-cost gas in the market area and have it ready for reliable delivery when it's needed most."

Rai Bhargava, MCNIC president and chief executive officer, said, "Depending on the level of interest shown by potential customers in our open season, this facility could provide between 1 and 2 billion cubic feet equivalent of natural gas storage service, which equates to peak-day withdrawal capacity of 100 to 200 million cubic feet per day of revaporized natural gas."

Open season for the joint project will begin at 8 a.m. eastern standard time (EST) on June 18, 1997 and end at 5 p.m. EST on July 25, 1997. The project's size, capacity and feasibility will be based on the open season results. Following the completion of a successful open season, Continental States plans to file for Federal Energy Regulatory Commission approval of the project.

Interested parties seeking a copy of the open season notice or more information about the project, please contact Ralph De Geeter at (203) 458-9444, fax: (203) 458-7081.

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. For more information about El Paso Energy Corporation, access the World Wide Web at http://www.epenergy.com.

MCN Energy Group Inc. is a $3.7 billion (assets) diversified energy holding company with natural gas markets and investments throughout North America and in India. The company operates through two major business groups: The Diversified Energy group, operating through MCNIC, is involved in oil and gas exploration and production, gas gathering, transmission, processing and storage, energy marketing, electric power generation and other energy-related businesses; The Gas Distribution group consists principally of Michigan Consolidated Gas Company, a natural gas distribution and transmission company servicing 1.2 million customers in more than 500 communities throughout Michigan. Information about MCN Energy Group is available on the World Wide Web at http://www.mcnenergy.com.

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 companies have 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 companies make these statements and projections in good faith, neither the companies nor their managements can guarantee that the anticipated future results will be achieved. Reference should be made to the companies' (and their affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.