For further information:

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

TRUNKLINE GAS COMPANY ANNOUNCES OPEN SEASON
FOR NORTH TEXAS EXPANSION

HOUSTON - May 23, 2005 -Trunkline Gas Company has scheduled an open season for potential customers to request long-term firm natural gas transportation services for the proposed North Texas Expansion Project.

The project will expand Trunkline’s natural gas pipeline in East Texas through construction of a loop into Louisiana to give customers increased access to additional Texas supply. The project calls for Trunkline to build about 45 miles of 30-inch diameter pipeline along an existing right of way from the Kountze, Texas, compressor station to the Longville, La., compressor station. The expansion will provide about 400 MMcf/d of additional capacity and is estimated to be in service in 2007.

Trunkline also will consider offers from existing shippers to turn back capacity on the pipeline system during the open season.

By expanding the system west from the Longville compressor station, Trunkline will be able to receive onshore production originating in North and East Texas through existing or proposed intrastate pipeline and storage connections. These connections may include Energy Transfer Partners, L.P. (Houston Pipe Line Company - Texoma), Kinder Morgan Intrastate Pipeline, Centana Intrastate Pipeline, Inc. – Spindletop Storage (a subsidiary of Duke Energy Field Services, LP) and Enstor’s proposed Houston Hub. In addition, an increase in capacity out of Texas will allow Trunkline to access gas from proposed LNG terminals that are planned for the Texas Gulf Coast.

"The North Texas Expansion project will provide additional sources of Texas supply for our customers," said Rob Bond, president and chief operating officer of Panhandle Energy. "The open season will give us an indication of the amount of capacity our customers want and provide us with the information necessary to finalize the size and timing of the project."

Trunkline began accepting requests at 9 a.m. CDT Monday, May 23, 2005 and the open season will continue until 3 p.m. CDT July 28, 2005. Precedent agreements executed by shippers as a result of this open season will be binding upon execution by Trunkline.

Shippers interested in participating in the open season may obtain further information or open season documents by contacting Jim VanMatre at 713.989.7625 or Allen Tate at 713.989.7633

Trunkline Gas Company, a unit of Southern Union Company, operates a 3,500-mile natural gas pipeline system with access to Gulf Coast supply sources, that delivers up to 1.5 billion cubic feet per day of natural gas to Midwest and East Coast markets.

During this Open Season, any Shipper interested in contracting for the North Texas Expansion Project capacity should read the Open Season Procedure, and must execute and return the following documents:

• Precedent Agreement and Appendix A to Precedent Agreement


• Credit Application or evidence of credit worthiness consistent with Trunkline’s FERC Gas Tariff.

About Southern Union Company

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

Through Panhandle Energy, the company owns and operates 100% 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 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 almost 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

# # # # #