Press Release

FLORIDA GAS TRANSMISSION PLACES ITS PHASE IV EXPANSION IN SERVICE

HOUSTON -- Florida Gas Transmission Company (FGT) announced today that it has placed in service its Phase IV Expansion, adding 134 miles of underground pipeline and more than 38,000 horsepower of compression and associated facilities to its existing natural gas transmission system. FGT will provide an average of approximately 200 million cubic feet per day (MMcf/d) of incremental firm transportation service on an annual basis. Seven shippers have executed 20-year firm commitments for the incremental service, net of turn-back capacity.

“Bringing natural gas to Southwest Florida for the first time through our expansion into the Fort Myers area demonstrates FGT’s ability to meet the growing energy needs of the state,” said Bob Hayes, managing director of marketing for Florida Gas Transmission. “With cooperation from local, state and federal agencies, FGT was able to complete the project on time delivering natural gas for electric generation and local distribution.”

As previously announced, FGT filed its Phase V Expansion with the Federal Energy Regulatory Commission late last summer to add approximately 428 MMcf/d of capacity by spring 2002. The project, with estimated construction costs of $450 million, is supported by long-term firm agreements with seven customers. FGT received its draft environmental impact statement for Phase V last month.

Through Phase IV and Phase V, FGT will make available more than 600 MMcf/d of new capacity to the state of Florida, increasing total capacity to more than 2 billion cubic feet/day (Bcf/d) by spring 2003.

Florida Gas Transmission, a wholly owned subsidiary of Citrus Corp., operates an approximately 4,700-mile interstate natural gas transmission system from South Texas to South Florida. Citrus Corp. is owned jointly by Enron Corp. and El Paso Corporation. Information is available on the Internet at www.fgt.enron.com.