HOUSTON, TEXAS, April 25, 2000—El Paso Energy Corporation (NYSE:EPG) today announced plans to jointly construct with Enron Corp. (NYSE:ENE) a large diameter jurisdictional pipeline from Savannah, Georgia to a point of interconnection with Florida Gas Transmission Company (which is owned by a jointly owned subsidiary of Enron and El Paso) near Jacksonville, Florida. The new pipeline, Cypress Natural Gas Company, will provide southeastern Georgia and Florida with an additional pipeline supplier and access to an important new gas supply source. In addition to the new pipeline, Florida Gas Transmission plans to develop and market an expansion of its system south of Jacksonville in order to serve new power generation loads currently being developed in central and southern Florida.

Southern LNG Company, an affiliate of El Paso Energy, was recently authorized by the Federal Energy Regulatory Commission (FERC) to reactivate its Liquefied Natural Gas (LNG) terminal near Savannah. The regasified LNG will be the primary supply source for the new pipeline with additional gas supplied by Southern Natural Gas Company, a business unit of El Paso Energy, and Florida Gas.

"We believe this pipeline project will greatly enhance our ability to serve natural gas and power generation markets in Georgia and Florida," said John W. Somerhalder, president of El Paso Energy's pipeline group. "We are pleased to be working with Enron on such an important project."

A preliminary route has been selected for the 160-mile pipeline pending final routing decisions that will be made after discussions are held with local officials, prospective landowners, and various environmental agencies. Cypress plans to file an application with the FERC in January 2001 for authorization to construct and operate the pipeline. Construction is expected to begin in the third quarter of 2002, and the pipeline's projected in-service date is April 2003. Plans for the new pipeline will be finalized after an open season that will be held from May 1 through June 30, 2000.

Florida Gas also announced plans to hold an open season from May 1 to June 30 to solicit bids for an expansion of Florida Gas' 4,700-mile pipeline system. Plans for the expansion will be finalized after the open season responses are evaluated.

"We believe the Cypress project, coupled with an expansion of Florida Gas' pipeline, is a very cost effective and environmentally sound option for meeting the additional demand for natural gas in the state," said Rock Meyer, president of Florida Gas Transmission. "We also believe these projects will enable us to diversify the gas supply sources we can make available to our customers in Florida."

With over $16 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy International Company, El Paso Field Services Company, and El Paso Production 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, merchant energy services, power generation, international project development, gas gathering and processing, and gas and oil production. On January 18, 2000, El Paso Energy announced that it has agreed to merge with The Coastal Corporation in a deal valued at $16 billion, including approximately $6 billion of assumed debt and preferred equity. Visit El Paso Energy's web site at www.epenergy.com.

Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $33 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron's internet address is www.enron.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.