HOUSTON, TEXAS, March 25, 1997-El Paso Energy Corporation (NYSE:EPG) announced today that staffing plans associated with a corporate reorganization are now essentially complete. As a result, El Paso is reducing the size of its work force by 329 employees, resulting in a total work force for El Paso Energy of approximately 3,500 employees. The majority of these reductions are occurring in the field operations of Tennessee Gas Pipeline Company, and affected employees are being notified of their status with the company today. These reductions, which complete the reorganization process, are in addition to reductions of 261 employees that were made at El Paso Energy's main office locations in February.

This action is part of a corporate-wide plan to maximize efficiency in the company's field operations. After evaluating its staffing needs, the company identified employees whose qualifications best meet the company's business requirements and staffed the organization accordingly. Employees who are not retained will be eligible to receive full severance benefits. El Paso Energy Corporation is offering outplacement assistance to all affected employees.

According to William A. Wise, Chairman, President, and Chief Executive Officer, "Today's actions complete the reorganization plan we implemented when El Paso Energy acquired Tenneco Energy. This plan has allowed us to achieve our primary goal of operating the safest and most efficient pipeline system in the country. We believe the changes we are making today will fulfill our obligations to our employees, the community and our shareholders, positioning El Paso Energy Corporation to lead the energy industry as it changes to meet the future."

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 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.