Houston, Texas, December 14, 1998-El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that it has agreed to acquire an interest in East Asia Power Resources Corporation, a publicly traded company in the Philippines. El Paso Energy International will invest $70 million to acquire an equity stake and a convertible loan in East Asia Power Resources. Closing is scheduled for early January 1999.

East Asia owns and operates three power generation facilities in the Philippines with a total generating capacity of 265 megawatts. The company also has options to acquire two power generation facilities in the Philippines with an aggregate generating capacity of 123 megawatts. Electric power generated by the facilities is supplied to a diversified base of customers including NPC, the state-owned utility, private distribution companies and industrial users. East Asia Power has one of the best operating and environmental records in the region.

"This project establishes El Paso Energy International as a key participant in the Philippine power market," said John D. Hushon, president of El Paso Energy International. "East Asia Power is the second largest independent power owner and operator in the Philippines. Thus, the acquisition generates immediate critical mass in the Philippine power market and provides a springboard for future growth opportunities through both greenfield development and acquisitions. The acquisition will be earnings accretive to El Paso Energy immediately."

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.