Sep 01 - PRNewswire-FirstCall

El Paso Corporation provided an update today on the impact of Hurricane Katrina on its Gulf of Mexico operations. The company has nearly completed the process of re- staffing and inspecting its production facilities along the Gulf Coast, and, although detailed assessments are not yet available, initial inspections indicate minimal damage to El Paso's production facilities.

The company reports minimal damage to the facilities on ANR pipeline (ANR) and isolated damage to facilities on Tennessee Gas Pipeline (TGP) and Southern Natural Gas (SNG). Limited resources and challenging logistics are hampering efforts to access and fully inspect offshore pipeline facilities at this early stage.

Interstate Natural Gas Pipeline Operations

Approximately 3 Bcf/d was initially shut-in on El Paso's three natural gas pipeline systems in the Gulf of Mexico as a result of Hurricane Katrina. Currently, there are 900 million cubic feet per day (MMcf/d) of restricted volumes on TGP, 550 MMcf/d on SNG, and 400 MMcf/d on ANR Pipeline. On TGP, the Bay Saint Louis compressor station in Mississippi and the Leeville and Port Sulphur stations in Louisiana have sustained water damage as have the Toca and Olga stations on SNG. In a positive development for producers, TGP, which operates the east leg and header sections of the Blue Water Gathering System in the Gulf of Mexico, expects approximately 150 MMcf/d of production to be able to enter the header and flow to the west. The timing of additional volumes becoming available is difficult to predict given the uncertainty of potential repairs on TGP and because producers are still evaluating their platforms upstream of El Paso's pipelines.

Production Operations

As Hurricane Katrina moved into the Gulf, El Paso shut-in approximately 180 million cubic feet equivalent per day (MMcfe/d) of the 205 MMcfe/d that was producing before the storm. The company has inspected 61 of the 77 platforms that it operates, and overall, damage is minimal. The most common problem is damage to heliports. One El Paso platform was destroyed in the storm, but that platform accounted for only 1 MMcfe/d, net to the company. El Paso's production is now nearly 80 MMcfe/d. Because pipelines downstream of El Paso's operations are still assessing the integrity of their systems, the company cannot predict how soon the remaining production will resume.

Midstream Operations

El Paso's south Louisiana gathering and processing assets sustained minimal damage and power interruptions and have returned to operational status. On August 8, 2005, the company announced the sale of these assets and still expects to close the transaction in the fourth quarter.

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/ .

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 ultimate extent of the damages to our pipeline and production facilities and of other producers, the ability to repair any damage to such pipeline and production facilities and to restore transportation services and oil and gas production deliveries on a timely basis; the costs of effectuating such repairs and replacement facilities; the receipt of any related necessary governmental approvals 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.

El Paso Corporation

CONTACT: Investor and Public Relations, Bruce L. Connery, VicePresident, +1-713-420-5855, or fax, +1-713-420-4417, or Media Relations,Richard Wheatley, Manager, +1-713-420-6828, or fax, +1-713-420-6341, both of El Paso Corporation

Web site: http://www.elpaso.com/