Houston, Texas, November 5, 1998-El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that its consortium won the bid to construct the PIGAP II high pressure natural gas injection facility located in Venezuela.

The $400 million PIGAP II project will be the world's largest natural gas compression facility with 308,000 horsepower compressing up to 1.5 billion cubic feet per day. The compressed gas will be delivered to Petroleos de Venezuela (PDVSA) under a 20-year contract and will be used for the secondary recovery of crude oil from the Santa Barbara/Pirital crude oil fields. Construction is expected to begin in the second quarter of 1999, with initial operations commencing in the fourth quarter of 2000.

El Paso Energy International holds a 50 percent interest in the project, while partners GE Capital and Nissho Iwai each hold 25 percent interests.

"We are pleased that PDVSA awarded the PIGAP II project to our consortium. The project will extend the productive life of the Santa Barbara/Pirital oil fields by approximately 1.3 billion barrels of light crude oil and condensates over the next forty years," said John Hushon, president, El Paso Energy International. "Venezuela is a key energy producer, and the PIGAP project represents our first opportunity to invest in this important country."

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.