Houston, Texas, June 25, 1998-Four major natural gas companies have announced their intent to develop, construct, own, and operate a $220 to $280 million pipeline to serve developing markets in Northern Illinois and Wisconsin. The proposed 36-inch diameter, 150 to 200-mile pipeline would start near Chicago, Illinois and move gas from Western Canada and the major U.S. supply basins to customers in Northeast Illinois and Central and Southeast Wisconsin.

The Illinois-Wisconsin Express Project is a joint venture between El Paso Energy Corporation (NYSE:EPG), Peoples Energy Corporation (NYSE:PGL), Enron Corp. (NYSE:ENE), and Northern Border Pipeline Company. The proposed pipeline will not only serve growth in traditional markets but also the emerging need for gas-fired power generation in the region. The pipeline, originating at Joliet, Illinois, will also provide customers with access to a diverse choice of supply basins as well as storage and other services available in the Chicago area. The proposed pipeline is scheduled to begin service in November 2001 with an initial capacity of approximately 650 million cubic feet per day (MMcf/d) of gas.

"The Illinois-Wisconsin Express Project is driven by a market need and fueled by a group of companies willing to accept the challenge in meeting that need," said John W. Somerhalder II, president of Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation. "We are very pleased to participate in a project sponsored by such a strong group of companies, and we look forward to the successful implementation of this project."

Information regarding an open season will be announced shortly. For information regarding the project, contact Mike Stokdyk, the project coordinator at Tennessee Gas Pipeline, at (713) 420-3434 or send a fax to (713) 420-2369.

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.

Peoples Energy Corporation is a diversified energy company with five principal business units. The largest two, Peoples Gas and North Shore Gas, are gas utilities serving nearly one million customers in Chicago and Northeastern Illinois. Peoples Energy owns and operates a gas storage facility in central Illinois that is connected to the Chicago market by a looped, high pressure pipeline which is also used to provide interstate transportation services via connections to five interstate pipelines. Visit Peoples Energy web site at www.pecorp.com.

Enron is the world's leading integrated electricity and natural gas company. The company, which owns approximately $24 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."

Northern Border Pipeline Company is a general partnership which owns and operates a 969-mile interstate pipeline that transports about 20 percent of all Canadian gas imported into the United States. Northern Border is currently constructing a 390-mile pipeline expansion and extension to Chicago, Illinois. In 1997, the Northern Border Pipeline system delivered an average of 1,770 MMcf/d. Northern Border Partners L.P., a majority owner in Northern Border, is traded under the ticker symbol "NBP." Visit Northern Border's web site at www.nbp.enron.com.

Click here to view a map of the project.

Project Contacts

Tennessee Gas Pipeline:  Mike Stokdyk
(713) 420-3434
Fax (713) 420-2369

Enron/Northern Border Pipeline:  Elaine Thomas
(713) 853-6814

Peoples Energy Corporation:  Rod Sierra
(312) 240-4567

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.