Tennessee Gas Pipeline announces plans for South Texas expansion project

HOUSTON, March 19, 2002 — Tennessee Gas Pipeline Co., a subsidiary of El Paso Corp., announced today that the company has filed its application with the Federal Energy Regulatory Commission (FERC) for the South Texas Expansion Project.

This project will connect Tennessee’s existing south Texas system in Hidalgo County to a new, open-access natural gas pipeline being constructed in northern Mexico.

The South Texas Expansion will enable Tennessee to deliver an incremental 320,000 dekatherms per day to the rapidly growing power generation market in northern Mexico. The South Texas Expansion Project will include a new, 9.3-mile, 30-inch diameter lateral extending from Tennessee’s system in Hidalgo County, Texas to the international border between the United States and Mexico.

The project will also include seven miles of new, 24-inch diameter pipeline loop along Tennessee’s Donna Line and a new compressor station, both located in Hidalgo County. The total cost for the new lateral pipeline project is an estimated $39.8 million, and service is scheduled to begin August 1, 2003. Tennessee has entered into binding contracts with transportation customers in the United States and Mexico representing power producers and marketing companies that have subscribed in full to the new pipeline’s capacity.

“This project continues Tennessee Gas Pipeline’s commitment to providing its customers access to new growth markets along our natural gas pipeline system,” said Stephen C. Beasley, president of Tennessee Gas Pipeline. “Our initial interconnect into Mexico installed in 1999 enabled natural gas shippers to access this growing market, and this expansion will provide additional opportunities as power generation, commercial, and industrial applications proliferate throughout the northern Mexico region.”

El Paso Corp. has core businesses in natural gas production, gathering and processing, and transmission, as well as in international project development, energy financing, power generation, liquefied natural gas transport and receiving, and merchant energy services. For more information, please visit www.elpaso.com .