Florida Gas Transmission Company Files with FERC for Florida Expansion Project

Business Wire,  Oct 5, 2005  

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HOUSTON -- Florida Gas Transmission Company (FGT) has filed an application with the Federal Energy Regulatory Commission for the company's proposed Phase VII expansion project.

The proposed project will expand FGT's existing pipeline infrastructure in Florida and provide the growing Florida energy market access to additional natural gas supply from the Southern LNG Elba Island liquefied natural gas import terminal near Savannah, Ga.

The Phase VII project calls for FGT to build approximately 33 miles of 36-inch diameter pipeline looping in several segments along an existing right of way and install 9,800 horsepower of compression. The expansion will provide about 160 million cubic feet per day of additional capacity to transport natural gas from a connection with Southern Natural Gas Company's proposed Cypress Pipeline project in Clay County, Florida. The project is expected to be in service in May 2007.

FGT has entered into natural gas transportation service agreements with Progress Energy Florida, Inc., and BG LNG Services, LLC.

"The Phase VII expansion project will provide Florida Gas access to an additional source of natural gas supply for our customers," said Bob Hayes, senior vice president and chief commercial officer of Florida Gas Transmission Company.

Florida Gas Transmission Company, a subsidiary of Citrus Corp., operates a 5,000-mile natural gas pipeline system extending from south Texas to south Florida with mainline capacity of 2.1 billion cubic feet per day. Citrus Corp is an affiliate of Panhandle Energy, a Southern Union company, (NYSE:SUG) and of El Paso Corporation (NYSE:EP).

About Southern Union Company

Southern Union Company (NYSE:SUG), headquartered in Scranton, Pa., is engaged primarily in the transportation, storage and distribution of natural gas.

Through Panhandle Energy, the company owns and operates 100 percent of Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Sea Robin Pipeline Company, Southwest Gas Storage Company and Trunkline LNG Company--one of North America's largest liquefied natural gas import terminals. Through CCE Holdings, LLC, Southern Union also owns a 50 percent interest in and operates the CrossCountry Energy pipelines, which include 100 percent of Transwestern Pipeline Company and 50 percent of Citrus Corp. Citrus Corp. owns 100 percent of the Florida Gas Transmission pipeline system. Southern Union's pipeline interests operate approximately 18,000 miles of interstate pipelines that transport natural gas from the San Juan, Anadarko and Permian Basins, the Rockies, the Gulf of Mexico, Mobile Bay, South Texas and the Panhandle regions of Texas and Oklahoma to major markets in the Southeast, West, Midwest and Great Lakes region.

Through its local distribution companies, Missouri Gas Energy, PG Energy and New England Gas Company, Southern Union also serves approximately one million natural gas end-user customers in Missouri, Pennsylvania, Rhode Island and Massachusetts.

For further information, visit www.southernunionco.com.

Forward-Looking Information:

This news release includes forward-looking statements. Although Southern Union believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Southern Union's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. 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.

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