HOUSTON, TEXAS, December 8, 2003—El Paso Corporation (NYSE:EP) today announced that it closed on the sale of its interest in Portland Natural Gas Transmission System for approximately $56 million. Affiliates of TransCanada Corporation and Gaz Métro purchased the company's 29.64 percent interest in the partnership. The transaction was completed on December 3, 2003.

This sale supports El Paso's previously announced 2003 five-point business plan, which includes exiting non-core businesses quickly but prudently, and strengthening and simplifying the balance sheet while maximizing liquidity.

El Paso Corporation is the leading provider of natural gas services and the largest pipeline company in North America. The company has core businesses in pipelines, production, and midstream services. Rich in assets, El Paso is committed to developing and delivering new energy supplies and to meeting the growing demand for new energy infrastructure. For more information, visit www.elpaso.com.