Houston, Texas, March 3, 1998-El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that its Epic Energy (WA) Pipeline Trust venture has won the bid to purchase the 925-mile AlintaGas Dampier-to-Bunbury Natural Gas Pipeline in Western Australia for approximately US$1.64 billion.

El Paso Energy International holds a 33.3 percent interest in the joint venture. Other partners include Consolidated Natural Gas Company (33.3%), AMP Asset Management (11.1%), Axiom Funds Management (11.1%), and Hastings Funds Management (11.1%).

The AlintaGas Dampier-Bunbury Pipeline serves a number of West Australian markets, including industrial end-users such as Wesfarmers, Western Power, Alcoa Aluminum and Worsley Alumina. The Northwest Shelf Gas Project as well as Harriet and East Spar Joint Ventures are among the primary natural gas suppliers on the 24-inch, 550 million cubic feet a day (MMcf/d) pipeline. Epic Energy (WA) Pipeline Trust will own and operate the pipeline through its Perth, Australia office. A system expansion currently underway on the Dampier-Bunbury Natural Gas Pipeline will supply gas to expansions committed by Alcoa, Worsley and Wesfarmers.

"Adding the AlintaGas Dampier-Bunbury pipeline to our existing Australian holdings gives us a high growth asset in a vital market and brings us one step closer to creating Australia's first nationwide energy company," said John Hushon, president of El Paso Energy International. "West Australia is the fastest growing economy in Australia, with substantial natural resources used throughout the world. Natural gas demand has grown at an annual rate of 12 percent since the completion of the pipeline in 1984 and is projected to continue to grow at an annual rate of 9 percent in the next several years."

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.

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.