Houston, Texas, August 31, 1998-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation (NYSE:EPG), has announced a new pipeline interconnect in Casey County, Kentucky designed to deliver an additional 200 million cubic feet per day (MMcf/d) of natural gas into Texas Eastern Transmission Company's system (TETCO). The interconnect is expected to be in service by November 1, 1998. Tennessee Gas Pipeline plans to accept nominations at this new point for November 1998 gas flow.

This new interconnect, known as The Dry Creek Sales Meter, will provide marketers and producers access to a broader supply of natural gas for downstream markets in the Northeastern United States.

"Building the new interconnect demonstrates that we're listening to the marketplace and providing our customers with flexible services and competitive prices," said John Somerhalder II, president of Tennessee Gas Pipeline Company. "This new facility will add value to the capacity customers already hold on our pipeline and will allow them more options to transport that gas in a marketplace that's constantly changing and demanding increased flexibility from everyone involved."

Initial reaction from Tennessee Gas Pipeline customers has been positive.

"We fully support Tennessee's proposal for an interconnect with TETCO in Kentucky," said John Scarlata, general manager of gas system and supply operations for Public Service Electric & Gas. "This interconnect will open up additionally needed flexibility on all pipeline transporters, and this certainly is a step in the right direction to address the competitive environment in which we all participate. PSE&G looks forward to the increased flexibility that should allow us more options in the ever changing marketplace."

Jimmy Thomas, vice president of east energy trading for Dynegy Marketing and Trading said, "Dynegy supports Tennessee's plan to construct this important new interconnect with TETCO. We are pleased to see Tennessee take this and other initiatives designed to provide more competitive options to the marketplace."

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.

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.