HOUSTON, TEXAS, July 26, 2001- Southern Natural Gas Company, a subsidiary of El Paso Corporation (NYSE:EPG), announced today an open season for a pipeline expansion project to provide additional transportation service in the Southeastern region of the United States. The non-binding open season, which began on July 19, 2001 and will continue until 5:00 p.m. Central Time on August 31, 2001, will allow Southern to evaluate the market interest, economics and design parameters for a 2004 pipeline expansion, which could include any part of its system where sufficient interest is expressed.

This open season follows two other expansion projects of Southern's south mainline system. Southern will soon begin construction of a system expansion with a 2002 in-service date and will file an application with the Federal Energy Regulatory Commission (FERC) in October to construct another system expansion with a 2003 in-service date. These expansions for 2002 and 2003 will provide capacity to customers that have executed long-term, firm transportation agreements for a total volume of approximately 700,000 dekatherms per day.

"Southern's strategically placed system provides shippers with efficient and economical transportation services," said Jim Yardley, president of Southern Natural Gas. "We also maintain the highest level of customer service to ensure timely and dependable delivery in the Southeastern markets where demand continues to increase primarily due to gas-fired power generation and industrial consumption."

The company anticipates completing negotiations for binding firm service agreements with interested parties no later than December 15, 2001. Southern expects to file the agreements and the application with FERC by June 2002.

Following a successful open season, Southern anticipates the pipeline project could be completed by the second quarter in 2004. Interested shippers may obtain a copy of the open season guidelines by contacting Bruce Hughes at 205-325-7146, Mark Limbaugh at 205-325-3878, or Paul Brown at 205-325-7316.

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 technologies, such as clean coal and liquefied natural gas, 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.