Houston, Texas, August 21, 1998 -El Paso Field Services Company, a business unit of El Paso Energy Corporation (NYSE:EPG), has brought its Chaco Cryogenic processing plant back up to normal operation with expected volumes of more than 500 million cubic feet per day (MMcf/d) by the end of today. The plant, which is located 20 miles south of Farmington, New Mexico, was restored to partial operation on Wednesday and Thursday after minor repairs were completed. The plant was shut down last week after a flash fire occurred during routine maintenance at one of the facility's three refrigeration/deethanizer compressors. The cause of the flash fire is still under investigation.

The three employees that were injured in the incident are all recovering. One employee has been upgraded to stable condition. The other is in guarded condition. Both remain in the hospital. The third employee has been released.

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.