HOUSTON, TEXAS, January 8, 2002—Tennessee Gas Pipeline Company, a subsidiary of El Paso Corporation (NYSE:EP), announced today it has accepted the Federal Energy Regulatory Commission's (FERC) certificate authorizing construction of the Dracut Expansion project. The $35-million project will replace approximately 12 miles of existing 16-inch natural gas pipeline with a 24-inch line from Dracut to Burlington, Massachusetts, primarily using existing rights-of-way. The project will increase takeaway capacity from the Dracut interconnect by an additional 200,000 dekatherms per day (Dth/d). Once the project is in service, the total takeway capacity from Dracut will increase to more than 600,000 Dth/d. The Dracut Expansion project is scheduled to be available for service in the fall of 2002.

"The Dracut Expansion represents the next logical step in expansions from Dracut to serve the Northeast energy corridor," said Stephen C. Beasley, president of Tennessee Gas Pipeline. "Tennessee initiated the growth by completing the Eastern Express 2000 project in January, 2000 and placed the Londonderry pipeline in service in September, 2001. Tennessee is pleased to provide additional, reliable service by substantially increasing our capacity from Dracut with this expansion. The use of existing corridors allows Tennessee to minimize the environmental impact while delivering an economic project."

The El Paso Corporation model-strong in assets, market expertise, valuation skills, and risk discipline-has proven itself year after year, resulting in a company with great financial strength and a reputation for integrity. El Paso has core businesses in natural gas production, gathering and processing, and transmission, as well as in international project development, energy financing, power generation, liquefied natural gas transport and receiving, and merchant energy services. The company is committed to developing new energy sources and technology to supply energy to communities around the world. For more information, please visit www.elpaso.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.