Houston, Texas, March 1, 1999-El Paso Energy International Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that it has acquired a 26-percent interest in the $295 million PPN Power Project located in the Indian state of Tamil Nadu from Energy Equity Corporation Ltd. The project consists of a 346-megawatt combined cycle power plant that has been under construction since January 1, 1999. The project will serve as a base load facility and sell power to the state-owned Tamil Nadu Electricity Board under a 30-year power purchase agreement. Commercial operations for the plant are expected to commence in April 2001.

El Paso Energy International is partnered in the project with Reddy Group, Marubeni Corporation and PSEG Global, a subsidiary of Public Service Enterprise Group. The PPN Power Project rounds out the company's South Asia portfolio, complementing existing assets in Pakistan and Bangladesh.

According to John D. Hushon, president of El Paso Energy International, "This project positions El Paso Energy in one of the largest electricity markets in Asia. PPN is also one of a handful of projects in the Indian power market that has been project financed without a sovereign guarantee from the central government. PPN will provide much-needed electricity for Tamil Nadu, enabling the state to sustain its rapid industrialization and economic development."

With over $10 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.