HOUSTON, Aug 01, 2005 /PRNewswire-FirstCall via COMTEX/ -- El Paso Corporation (NYSE: EP) announced today that it has agreed to sell several of its Asian power assets to a subsidiary of Globeleq, Ltd. for approximately $109 million. The assets include power plants in Pakistan, Indonesia, Bangladesh, and the Philippines. The sales are expected to close by the end of the fourth quarter of 2005.

With today's announcement, El Paso has contracted or sold all but one of its Asian power plants, with total expected proceeds of $463 million. These sales support El Paso's plan to reduce the company's debt, net of cash, to approximately $15 billion by year-end 2005. Since its March 17, 2005 long- range plan update, the company has announced or closed $0.7 billion of its targeted $1.2 billion to $1.6 billion of asset sales.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com .

Editor's Note:
     The table below lists the power plants included in today's announcement.

     Plant                Location                      Total   EP Ownership %
                                                      Megawatts (approximate)

     Fauji                Kabirwala, Pakistan            157         42
     Saba                 Lahore, Pakistan               134         94
     Sengkang             South Sulawesi, Indonesia      138         48
     Khulna               Khulna, Bangladesh             116         74
     Haripur              Haripur, Bangladesh            113         50
     Cebu                 Ermita, Philippines            120         80
     East Asia Utilities  Lapu-Lapu City, Philippines     50        100
     Duracom Mobile       Navotas, Philippines           242         65
      Power & East Asia
      Diesel Power



    Cautionary Statement Regarding Forward-Looking Statements

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, including, without limitation, the ability to implement and achieve our objectives in the long-range plan, including achieving our debt-reduction targets; our ability to close our announced asset sales on a timely basis; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE El Paso Corporation

Investor and Public Relations, Bruce L. Connery, Vice President, 1-713-420-5855, or fax, 1-713-420-4417
or
Media Relations, Bill Baerg, Manager, 1-713-420-2906, or fax, +-713-420-6341
both of El Paso Corporation

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