HOUSTON, TEXAS, September 10, 2001—Southern LNG Inc., a subsidiary of El Paso Corporation (NYSE:EPG), announced today an open season to expand its Elba Island liquefied natural gas (LNG) receiving terminal near Savannah, Georgia by approximately 80 percent. Southern LNG is offering an additional 3.3 billion cubic feet of storage capacity with a send-out rate of 360 million cubic feet per day (MMcf/d). The planned in-service date for the expansion is 2005, subject to receipt of adequate firm subscriptions and necessary regulatory approvals.

The Elba Island facility, inactive since 1982, is scheduled to begin receiving LNG shipments later this month, and volumes are expected to increase toward the design send-out rate of 440 MMcf/d by 2003. The expansion will increase the send-out rate to approximately 800 MMcf/d. The expansion will cost approximately $145 million, will have minimal environmental impact, and should benefit the port of Savannah.

"The recommissioning of Elba Island is a landmark event, and the announcement of this planned expansion-before we've received even the first shipment-demonstrates our commitment to meet the growing demand for natural gas in the Southeast markets," said Jim Yardley, president of Southern LNG. "In a growing market that relies nearly exclusively on North American natural gas supply, we're fortunate in the Southeast to have an existing facility at Elba Island that will provide our customers with access to diversified supplies from around the world."

Parties interested in receiving an open season package should contact Bruce Hughes at 205-325-7146. The binding open season will close on December 14, 2001.

El Paso Corporation is committed to meeting energy needs throughout North America and the world with operations that span the energy value chain from wellhead to electron. The company is focused on speeding the development of new energy sources to address critical energy shortages across the globe. Visit El Paso at 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.