Byron WrightVice President, Strategy and Rates El Paso Eastern Pipeline Group

How Many is Too Many:Terminal Approval to RegasificationWachovia Securities LNG ConferenceMay 16, 2006

2

Cautionary Statement Regarding Forward-looking Statements

This presentation 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 presentation, including, without limitation, our ability to successfully contract, build and operate the pipeline projects described in this presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, 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.

3

El Paso’s Natural Gas Pipelines

TennesseeGas Pipeline

Elba Island LNG

SouthernNatural Gas

ANR Pipeline

Great Lakes GasTransmission (50%)

ColoradoInterstate Gas

Wyoming Interstate

El PasoNatural Gas

MojavePipeline

Mexico Ventures

Cheyenne Plains Pipeline

CypressPipeline

Florida GasTransmission (50%)

► 26% total U.S. interstate pipeline mileage► 36 Bcf/d capacity (25% of total U.S.)► Best market connectivity► Best supply access► Leading pipeline integrity program

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LNG Threats and Opportunities for El Paso

OpportunityThre

at

Threat

OpportunityOpportunity

Threat

Both

Opportunity

LNG Imports:The Gulf Coast Advantage

Proposed terminals

Certificated terminal

Existing terminals

Project by 2012

5

BN/ABBBMexico

CCC+B-AMaritimes

CCDCD-West Coast

AB-B-CC-East Coast

DA+AAAGulf Coast

Market Basis

Market Liquidity

Pipeline Access

Quality ConstraintsSiting

LNG Prospects

6

NA Terminal Capacity Growth

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010

CanaportCosta AzulAltamiraCameronSabine PassFreeportGulf GatewayCove Point ExpCove PointLake Charles ExpLake CharlesElba ExpansionElba IslEverettLNG Imports

Bcf/dExisting, Contracted Expansions, New Construction

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LNG Terminal Utilization Rates

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004

Asia Europe NA Total

Source: PIRA

Uti

lizat

ion

Rat

e

Regas ($0.35–$1.0)

Transportation ($0.7–$2.0)

Liquefaction ($0.8–$1.5)

Supply ($1.0–$1.5)

In Billions

Pipeline ($0.03–$0.2)

► Entire LNG chain requires investment of $2.8 to $6 billion per 1 Bcf/d capability

► Regas and pipelines are the smallest components

2 to 3 years 3 ½ to 4 years2 years

3 to 3 ½ years

½ year

Capital requirements decrease downstream

Source: CERA

Will the Tail Wag the Dog?

+50%?

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9

El Paso’s Role in LNG Development

► Strategy is to develop, construct, own, and operate infrastructure

► Contract terminal developer

► Will accept some balanced risks as appropriate and necessary to get contracts for the project:– Permitting risk

– Timeline risk

– Capital cost risk

– Contract term risk

Current Elba Island Facility

0.806 Bcf/d0.360 Bcf/d0.446 Bcf/dFirm sendout

1.215 Bcf/d0.540 Bcf/d0.675 Bcf/dPeak sendout

Feb. 2006Nov. 2001In-service date

7.33 Bcf3.33 Bcf4.0 BcfStorage capacity

CombinedExpansionReactivation

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11

Elba’s Customers and Capabilities

Start-up

Contract term

Dec-2001

22 yrs.

Feb 2006

30 yrs.

–

–

Reactivation Phase II Total

Storage capacity (Bcf)

Sendout (MMcf/d)

Capex ($MM)

4.0

675

–

3.3

540

$155

15.7

2,115

$505

Phase III

2010/2012

Long-term

8.4

900

$350

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SNG’s Cypress ProjectWill Improve Supply to Southern GA and FL

JEA

Progress FL

Cypress Project (Phase I)► 165 miles 24" pipe► Capacity: 220 MMcf/d► Capex: $241 MM► Pipe ordered► FERC certificate expected 2Q ‘06► In-service May 2007

FGT Phase VII► Capacity: 100 MMcf/d► Capex: $63 MM► In-service May 2007

Elba Island

Supported by 20-year Agreements withBG & Progress

13

Elba Express PipelineWill Improve Supply to Georgia and the East Coast

Charlotte

Atlanta

Transco

Elba Island

Elba Express Pipeline► Pipe dia: 42"/36"; 191 miles► Capacity: 1,175 MMcf/d► Capex: $510 MM► In-service: 2010/2012

Supported by long-term agreements with

Shell & BG

Byron WrightVice President, Strategy and Rates El Paso Eastern Pipeline Group

How Many is Too Many:Terminal Approval to RegasificationWachovia Securities LNG ConferenceMay 16, 2006