Houston, Texas, March 4, 1998-El Paso Energy Corporation (NYSE:EPG) announced today an offering of $300 million in trust convertible preferred securities. These securities will be issued by a recently formed business trust, El Paso Energy Capital Trust I, and will be convertible into common stock of El Paso at a conversion ratio to be specified. The only assets of the Trust will be subordinated convertible debentures of El Paso.

The company will use the proceeds from the offering to repay short-term indebtedness and for general corporate purposes. Donaldson, Lufkin & Jenrette Securities Corporation; Goldman, Sachs & Co.; and Morgan Stanley Dean Witter have been named as the managing underwriters for the offering.

A copy of the preliminary prospectus for the offering may be obtained from the underwriters. Read it carefully before you invest in the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall any of these securities be sold in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state.

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 company has 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 company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the company's (and its affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.