HOUSTON, TEXAS, May 8, 2002—El Paso Global LNG, a subsidiary of El Paso Corporation (NYSE:EP), announced today the development of EP Energy Bridge^TM, a new ship-based liquefied natural gas (LNG) regasification system. Using proven offshore buoy technology to moor the ship and proprietary technology to regasify LNG onboard the ship and discharge it through a subsea pipeline, EP Energy Bridge^TM enables flexible, environmentally safe, and cost-effective delivery of natural gas directly to coastal regions eliminating the need of a conventional land-based terminal. This delivery system is expected to be operational and in service by 2005.

"EP Energy Bridge^TM gives El Paso the ability to serve existing baseload and peaking demand markets, as well as reach new markets where pipelines or traditional LNG terminals are cost prohibitive," said Ralph Eads III, president of El Paso Merchant Energy Group. "This delivery method continues our LNG strategy to bring competitively priced natural gas to growing North American markets and other regions worldwide. We are confident this technology will allow us to offer more flexibility to our customers while maintaining dependable service to meet the increased demand for natural gas."

The EP Energy Bridge^TM ships can regasify and deliver up to 400 million cubic feet of natural gas per day. An EP Energy Bridge^TM ship connects to pipeline infrastructure through an offshore buoy and turret system that has been used worldwide, including approximately 10 years of service in the harsh weather environment of the North Sea. As the LNG ship arrives at the unloading site, the buoy is pulled into a receiving cone and connected to the ship. The LNG is then regasified aboard the ship and the vaporized LNG is discharged through the buoy into the subsea pipeline system.

For continuous flow of natural gas, a typical EP Energy Bridge^TM system will have two offloading buoys to ensure uninterrupted delivery. Additionally, the offshore systems will provide a cost-effective solution to serve seasonal or peaking loads, and small to medium-size markets where natural gas delivery has previously been unavailable. El Paso anticipates the initial EP Energy Bridge^TM sites will be in the Gulf of Mexico and along the U.S. East coast. This new technology continues El Paso Global LNG's plan of becoming a leading worldwide LNG merchant and is complementary to existing assets and development plans.

El Paso developed the EP Energy Bridge^TM design in close cooperation with leading shipbuilders, offshore technology and transportation companies. Daewoo Shipbuilding & Marine Engineering Company, a Korean shipbuilder, will construct the initial EP Energy Bridge^TM vessels, which will be owned and operated by a consortium lead by Exmar. El Paso has entered into long-term agreements to charter three EP Energy Bridge^TM ships from the consortium. Delivery of the first ship is expected in the fourth quarter of 2004 and it will be able to serve growing natural gas markets worldwide. Advanced Production and Loading AS is the designer and manufacturer of the buoy system that will be used in the EP Energy Bridge^TM ships.

El Paso Global LNG is responsible for the advancement of LNG opportunities, including the development of LNG regasification terminals, shipping assets, and LNG supply resources worldwide. The El Paso Corporation model-strong in assets, market expertise, valuation skills, and risk discipline-has proven itself year after year, resulting in a company with both financial strength and a reputation for integrity. El Paso 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. The company is committed to developing new energy sources and technology to supply energy to communities around the world. For more information, please visit 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.