Houston, Texas, December 28, 1998-El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that it has acquired a 25 percent interest in Enfield Energy Centre Ltd. from NRG Energy, Inc. The 396-megawatt combined cycle gas turbine power plant is currently under construction near London, England. El Paso Energy International is partnered with Indeck Energy Services, Inc. and NRG Energy, Inc. in the project, which is expected to be operational by October 1999. Financial closing for the £176 million project occurred in December of 1997.

According to John D. Hushon, president of El Paso Energy International, "This project represents another step in our plans to develop a strategic presence in the United Kingdom power market and builds off the success of our recently announced Fife power project in Scotland. The Enfield power plant will be one of the most economical combined cycle gas turbine power plants in the country, providing cost-effective power supplies to prime locations north of London. We expect to continue our development efforts in this important market area."

With over $10 billion in assets, El Paso Energy Corporation provides energy solutions through five business units: Tennessee Gas Pipeline Company, El  Paso Natural Gas Company, El Paso Field Services Company, El Paso Energy Marketing Company, and El Paso Energy International Company. The company owns the nation's only integrated coast-to-coast natural gas pipeline system and has operations in interstate natural gas transmission, gas gathering and processing, energy marketing, and international 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.