Houston, Texas, December 15, 1999-El Paso Energy Corporation (NYSE:EPG) announced the beginning of an open season for a proposed new interstate pipeline to transport natural gas between the Raton Basin and the interstate pipelines of El Paso Natural Gas and Northern Natural Gas Company in Moore County, Texas. The non-binding open season commenced yesterday and will extend until 5:00 p.m. Mountain Standard Time (MST) on January 7, 2000.

Although a name for this pipeline has not been formally established, the project is currently being referred to as the Dumas Gas Transmission Project. As proposed, the project will involve the construction of a new interstate pipeline consisting of approximately 185 miles of 24-inch pipeline and appurtenant facilities. The pipeline, with an initial proposed capacity of 175 million cubic feet per day, will originate in Van Bremmer Canyon, Colfax County, New Mexico and connect with the interstate pipelines of El Paso Natural Gas and Northern Natural Gas Company in Moore County near Dumas, Texas.

"These new pipeline facilities will provide producers the needed capacity from the Raton Basin to downstream markets and will provide various markets greater access to Raton Basin supplies," said William A. Wise, president and chief executive officer of El Paso Energy Corporation.

Based on the contracts that result from this open season, El Paso Energy will file with the Federal Energy Regulatory Commission (FERC) in the first quarter of 2000, to construct this pipeline facility. Subject to the timing of FERC authorization, construction of the facilities could be completed as early as July 1, 2001.

With over $15 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, Southern Natural Gas Company, El Paso Field Services Company, El Paso Merchant Energy Company, El Paso Production Company, and El Paso Energy International Company. The company owns North America's largest natural gas pipeline system, both in terms of throughput and miles of pipeline, and has operations in natural gas transmission, gas gathering and processing, gas and oil production, power generation, merchant energy services, and international project 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.