For further information:

John P. Barnett, Director of External Affairs 713-989-7556

John F. Walsh, Vice President of Investor Relations 212-659-3208

FLORIDA GAS TRANSMISSION ANNOUNCES
OPEN SEASON FOR PROPOSED PIPELINE PROJECT

HOUSTON, January 14, 2008 - Florida Gas Transmission Company (FGT) has announced an open season for a proposed Phase VIII pipeline expansion project in Mississippi, Alabama and Florida.

FGT is considering increasing the capacity of its mainline facilities to provide additional firm transportation service capacity to Florida. The potential expansion would include construction of additional large diameter pipeline and the installation of additional compression. FGT also will consider offers from existing shippers wishing to permanently turn back unneeded capacity.

The results of the open season would determine the final scope of the project, which includes the configuration of the expansion facilities, the cost of the facilities and the incremental capacity available to shippers. Pending regulatory approvals, FGT would anticipate a spring 2011 in-service date for the project.

"This project would provide the State of Florida and our customers with additional natural gas transportation capacity needed for the growing Florida market," said Bob Hayes, senior vice president and chief commercial officer of Florida Gas Transmission. "Building additional looping on FGT’s existing pipeline system provides a very effective way to bring new gas supplies to Florida while minimizing the impact on land use and the environment."

Research indicates the state’s population is expected to continue to increase and demand for energy continues to climb. Currently, 85 percent of the natural gas consumed in Florida is used for electric generation.

The open season will begin January 14, 2008, and will close on February 15, 2008. For more information, please contact Jack Boatman at 713.989.2114 or one of the marketing representatives listed below:

        Jim Dowden         407.838.7080
        Dan Swanson       407.838.7014
        Mike Taran          407.838.7007

Additional information about the proposed Phase VIII expansion project is available at www.panhandleenergy.com/fgt/phaseVIII.

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 50 percent owned by Southern Union Company (NYSE:SUG) and 50 percent owned by El Paso Corporation (NYSE:EP).

About El Paso Corporation

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest interstate natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, visit www.elpaso.com.

About Southern Union Company

Southern Union Company, headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and North America’s largest liquefied natural gas import terminal.

Through Panhandle Energy, Southern Union’s interstate pipeline interests operate approximately 15,000 miles of interstate pipelines that transport natural gas from the Anadarko and San Juan basins, the Rockies, the Gulf of Mexico, Mobile Bay and South Texas to major markets in the Southeast, Midwest and Great Lakes region.

Southern Union Gas Services, with approximately 4,800 miles of pipelines, is engaged in the gathering, transmission, treating, processing and redelivery of natural gas and natural gas liquids in Texas and New Mexico.

Through its local distribution companies, Missouri Gas Energy and New England Gas Company, Southern Union also serves more than half a million natural gas end-user customers in Missouri and Massachusetts.

For further information, visit www.sug.com

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