For further information:

John Barnett Director of Public Information                  Panhandle Energy 713/989-7556

Jack Walsh Director of Investor Relations Southern Union Company 570/829-8662

PANHANDLE EASTERN PIPELINE COMPANY
HOLDS OPEN SEASON FOR MUNCIE LATERAL ENHANCEMENT

Houston - April 20, 2004 -Panhandle Eastern Pipe Line Company ("Panhandle Eastern") has scheduled an open season for potential customers to request long-term, firm natural gas transportation service for a proposed enhancement and extension of its Muncie (Ohio) Lateral.

The project would improve services available through the Muncie Lateral and include construction of 124 miles of 30-inch diameter pipeline from Panhandle Eastern's pipeline in Grant County, Ind., to Cincinnati. The project would provide approximately 500 million cubic feet per day of additional transportation capacity to Dayton, Cincinnati and East Coast markets through connections at Lebanon, Ohio, to Texas Eastern Transmission Corporation, Columbia Gas Transmission Corp. and Dominion Transmission Inc. The project is planned to be in service by Nov. 2006.

"This project will enhance Panhandle Eastern's access to existing Midwest markets and offer new East Coast markets natural gas supplies from the Midcontinent, Rocky Mountains and Gulf Coast, as well as liquefied natural gas (LNG) supplies," said David Stevens, president and chief operating officer. "Panhandle Eastern is committed to providing multiple supply options to these markets to help meet the growing need for natural gas."

Panhandle Eastern will accept requests from Tuesday, April 20, 2004, until 5 p.m. CDT Friday, May 14, 2004. Participation in this open season will be considered non-binding for Panhandle Eastern or any potential shippers, but only requests received during the open season period will be guaranteed consideration for service on the project.

Open Season documents can be obtained by calling either Jim Van Matre at (713) 989-7625 or Gregg Russell at (713) 989-7624.

Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Trunkline LNG Company and Sea Robin Pipeline Company, operating as Panhandle Energy, are units of Southern Union Company (NYSE: SUG). Panhandle Energy operates more than 10,000 miles of mainline natural gas pipeline extending from the Gulf of Mexico to the Midwest and Canada. These pipelines access the major natural gas supply regions of the Louisiana and Texas Gulf Coasts as well as the Midcontinent. The pipelines have a combined peak day delivery capacity of 5.4 billion cubic feet per day and 90 billion cubic feet of underground storage. The company also owns and operates North America's largest liquefied natural gas receiving terminal with sendout capacity of 630 million cubic feet per day and 6.3 billion cubic feet of above ground LNG storage facilities.

Southern Union Company is engaged primarily in the transportation and distribution of natural gas. Through its local distribution companies, Southern Union also serves approximately 1 million natural gas end user customers in Missouri, Pennsylvania, Rhode Island and Massachusetts. Visit Southern Union on the web at www.southernunionco.com.

For more information on Panhandle Energy, please visit our website at:
www.panhandleenergy.com

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