NGS to Build New Natural Gas Transportation and Storage Hub in LA

Independent Gas Storage developer, NGS Energy, announced today that it will develop a new major transportation and storage hub from Perryville to Delhi in Northeast Louisiana. This new hub -- the Gulf Coast Connector -- will be ideally situated to connect the prolific Barnett Shale gas play to higher valued markets and will provide greater reliability to both producers and consumers of gas throughout the region.

The project will have interconnections with up to 13 interstate and intrastate pipeline transmission systems including: ANR, Columbia Gulf, MRT, Tennessee, Texas Eastern, Texas Gas, Trunkline, Southern Natural, two new expansions: Centerpoint's Carthage to Perryville and Gulf South's East Texas to Mississippi Expansion, as well as three proposed pipelines: Kinder Morgan Midcontinent Express, Boardwalk Gulf Crossing and the Southeast Supply Header. By joining several new pipeline projects with existing infrastructure that serves nearly every major market east of the Rockies, Gulf Coast Connector will be one of the most liquid and dynamic hubs in North America.

Apart from other projects, Gulf Coast Connector will utilize salt storage caverns to provide a full menu of highly flexible storage and hub related services. Gulf Coast Connector will also offer firm transportation and wheeling services on the system independent of storage.

The project will file an application for a certificate of public convenience and necessity with the FERC in early 2008, targeting a mid-2009 in-service date for firm transportation and early 2010 in-service date for firm storage.

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