El Paso Natural Gas Co. and Empresas ICA Sociedad Controladora, S.A. de C.V. joint development agreement

Business Wire, July 17, 1995

EL PASO, Texas--(BUSINESS WIRE)--July 17, 1995--El Paso Natural Gas Company (NYSE:EPG) and Empresas ICA Sociedad Controladora, S.A. de C.V. (ICA), today announced that they have entered into an agreement for the joint development, construction, operation and ownership of natural gas pipeline systems and other infrastructure projects, in Mexico, Central America, and South America.

EPG is one of the largest natural gas pipeline transmission companies in the United States and currently operates 17,000 miles of pipe. EPG's pipeline system parallels the United States/Mexico border from El Paso, Texas to California.

ICA is Mexico's largest engineering and construction company and plays a leading role in the development of civil and infrastructure projects in Mexico and Central America and South America, including hydropower generation facilities. EPG and ICA are partners in the Samalayuca II project, a 700 MW power station to be built in Chihuahua, Mexico about 30 miles south of El Paso, Texas.

"We are very pleased with the agreement and believe it represents a commitment on the part of both companies to play major roles in the emerging opportunities for the development of energy infrastructure in Mexico and Latin America," said William A. Wise, chairman, president and chief executive officer of El Paso Natural Gas Company.

"ICA's international engineering and construction experience, combined with El Paso's energy, natural gas marketing and operating experience enables us to offer Mexico the best attributes of a partnership between U.S. and Mexican companies that are uniquely qualified to build the energy infrastructure that Mexico seeks to revitalize its economy."

Bernardo Quintana, president and chief executive officer of Empresas ICA, commented, "For ICA, the association with El Paso is one more step that will allow us to participate in the construction and operation of energy facilities, with the knowledge and support of a leading American company with extensive operating experience. Mexico and other Latin American countries require a huge development of energy infrastructure, and we will work to provide it."

EPG operates one of the nation's largest field and mainline natural gas transmission systems, connecting natural gas supply regions in New Mexico, Texas, Oklahoma, and Colorado to markets in California, Nevada, Arizona, New Mexico, Texas, and Mexico. EPG currents transports gas to the Mexican states of Sonora and Chihuahua.

ICA, the largest construction company in Mexico, is engaged in a full range of construction and related activities, including the construction of infrastructure facilities, as well as industrial, urban and housing construction projects for both the Mexican public and private sectors.

ICA is also involved in the construction, maintenance and operation of highways, bridges and tunnels and in the management and operation of water supply systems under concessions granted by the Mexican government. In addition, ICA is engaged in the manufacturing and marketing of industrial goods; in the ownership and operation of hotels; and in the quarrying and marketing of construction aggregates, particularly limestone.

CONTACT: El Paso Natural Gas Co., El Paso

Norma F. Dunn, 915/541-5443