NGC Contracts for 1.3 bcf Per Day of Capacity From El Paso Natural Gas Company; NGC to Use Capacity to Serve Western U.S. Natural Gas and Power Market

Business Wire, Nov 6, 1997

HOUSTON--(BUSINESS WIRE)--Nov. 6, 1997-- NGC Corporation (NYSE: NGL) today announced that El Paso Natural Gas Company, a business unit of El Paso Energy Corporation (NYSE: EPG) has accepted its offer to contract for 1.3 billion cubic feet (bcf) per day of firm capacity to California on the El Paso Natural Gas pipeline system. The arrangements will take effect on January 1, 1998 and call for a minimum of $70 million of reservation charges to be paid by NGC over a two-year term.

Under the terms of the arrangement, NGC will pay a reservation charge of 12 cents per dekatherm per day plus minimum usage charges ranging from 1.6 cents to 3.7 cents per dekatherm per day, depending on the basin from which the natural gas originates. The contracts have a provision whereby NGC will pay a minimum charge equal to the full reservation charge on at least 50 percent of the contracted volumes in each month during 1998 and on at least 72 percent of the contracted volumes in each month during 1999.

"The new capacity arrangement with El Paso solidifies NGC's ability to serve our California customers. This market has traditionally been very important to NGC and recently our California customer base has expanded following the addition of Chevron-related customers and 10 Destec power plants. The arrangement also positions NGC for continued growth in the Western U.S.," said Steve Bergstrom, President and Chief Operating Officer of Natural Gas Clearinghouse and Senior Vice President of NGC Corp.

NGC Corporation (NYSE: NGL) is a leading gatherer, transporter and marketer of energy products and services in North America and the United Kingdom. Through its "Energy Store," NGC offers a multi-commodity energy-product-and-services resource that provides natural, natural gas liquids, electricity and crude oil.

CONTACT: NGC Corp., Houston

Dean Ayers (Analyst Contact), 713/507-6852

or

Maripat Sexton (Media Contact), 713/507-3936