HOUSTON, TEXAS, March 28, 2001—El Paso Corporation (NYSE:EPG) announced today the appointment of William A. Smith, executive vice president of El Paso Corporation, to oversee the continued development of its liquefied natural gas (LNG). Previously, Smith was executive vice president of Corporate Development for El Paso and was responsible for the company's capital review process. Prior to joining El Paso in 1999, Smith was the executive vice president and general counsel of Sonat Inc., where he led business development efforts along with legal and government affairs. He also previously served as vice chairman of Sonat Exploration and president of Southern Natural Gas Company. Smith holds a bachelor's degree from the University of Virginia and graduated from the University of Alabama School of Law.

El Paso has previously announced plans to bring LNG supplies to North American markets by developing new LNG terminals in the United States, Mexico, and the Bahamas. The company holds long-term capacity at the Elba Island and Cove Point LNG facilities, which are being reactivated, and is importing LNG to the Lake Charles terminal. A contract for long-term LNG supplies from Trinidad has been finalized and negotiations are under way for additional LNG supplies from other countries. Earlier this month, the company announced a letter of intent with Phillips Petroleum to purchase LNG from Australia over a 17-year period.

"We believe LNG will be among the fastest growing segments of the energy industry with a 10-to 15-percent annual growth rate over the next decade," said Ralph Eads, president of El Paso Merchant Energy Group. "Mr. Smith has extensive background in LNG with his previous responsibilities at Sonat, and his appointment demonstrates our strong commitment to our LNG business."

Smith will be responsible for developing the company into a leading LNG merchant as natural gas demand continues to increase in markets around the world. About 700 trillion cubic feet of natural gas is currently available in remote areas worldwide. Bringing this additional source of supply to the North American market will enhance the infrastructure grid by reducing the need for incremental pipeline construction or looping facilities and create additional storage capacity.

"LNG has become a robust commodity, and as one of the largest natural gas transportation and marketing companies, we can extrapolate our experiences in North America and apply them to the global marketplace," said Smith. "New technology for LNG processing facilities and lower shipping costs have reduced the expense of delivering the fuel to strategic locations, enabling us to create new markets for natural gas consumption."

El Paso Corporation, the largest and most broadly based natural gas company in the world, spans the energy value chain from wellhead to electron. With an enterprise value in excess of $50 billion, El Paso is a leader in every phase of the natural gas industry. The company owns and operates a significant portion of the North American natural gas delivery grid, operates the fastest growing, most sophisticated energy merchant group, and is the nation's third largest natural gas producer. El Paso, a leader in risk management techniques, is focused on maximizing shareholder value, transforming existing markets, and speeding the development of new markets. 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.