Houston, Texas, September 17, 1998-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation (NYSE:EPG), and Mississippi Canyon Gas Pipeline, LLC, a business unit of Tejas Offshore Pipeline, LLC, have announced plans to construct a new 400 million cubic feet per day pipeline interconnection in Venice, Louisiana. The project will link the deepwater producing regions behind Tejas Energy's Mississippi Canyon Gas Pipeline with the dynamic market areas located along Tennessee Gas Pipeline. The project is expected to be in service by April 1, 1999. Tennessee Gas Pipeline plans to accept nominations at this new point for April 1999 gas flow.

Tennessee Gas Pipeline will conduct a binding open season for receipts into the new interconnect beginning on September 17, 1998 and ending on September 25, 1998. Successful bidders in the open season will be announced on September 28, 1998.

"Construction of this new interconnect, paired with the just completed expansion of our South Pass system, demonstrates our continuing commitment to addressing the needs of Gulf of Mexico producers," said John Somerhalder II, president of Tennessee Gas Pipeline Company. "Along with the recently announced interconnection with Texas Eastern Transmission Company's facilities in Kentucky and the interconnection with Pemex Gas Y Petroquímica Básica in South Texas, this project further increases the flexibility of Tennessee Gas Pipeline's system."

The interconnect also allows Mississippi Canyon Gas Pipeline to provide enhanced services to its customers. "Our challenge continues to be to provide the necessary infrastructure to promote the continued growth in deepwater development," said Doug Krenz, president of Tejas Offshore Pipeline. "The new interconnect with Tennessee will provide shippers on Mississippi Canyon Gas Pipeline with another option to access high value natural gas markets and process their gas."

With over $9 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. Visit El Paso Energy's web site at www.epenergy.com.

Tejas Offshore Pipeline, LLC, is a company of Tejas Energy, LLC, an affiliate of Shell Oil Company. Tejas Energy is one of the largest companies in North America engaged in natural gas transportation, processing, storage and natural gas liquids operations.

Contacts

Tennessee Gas Pipeline:  Richard Whitworth
(713) 420-3674

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.