07-13
For further information:

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

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

SOUTHERN UNION ANNOUNCES OPEN SEASON
FOR PROPOSED PIPELINE CONNECTION BETWEEN
TRUNKLINE GAS AND VECTOR

HOUSTON, June 1, 2007 -Southern Union Company (NYSE: SUG) today announced its Trunkline Gas Company business unit has scheduled an open season to gauge customer interest for a proposed pipeline connection to Vector Pipeline.

The VectorConnector Project would add approximately 16 miles of pipeline from Trunkline’s Elkhart, Ind., meter station to a new connection with Vector Pipeline in St. Joseph County, Michigan. The project would include construction of a new compressor station at the beginning of the new pipeline and could include additional pipeline looping of Trunkline’s mainline system depending on shipper demand. Trunkline anticipates the project would make available up to 650 million cubic feet per day of capacity to shippers. If the project moves forward, it is expected to be in service in late 2009. The response to the open season will determine whether Trunkline proceeds with the project as well as the pipeline diameter and final scope of the project.

Building the VectorConnector will make Trunkline capable of flowing gas bidirectionally between the upper Midwest and the Gulf Coast based on the needs of customers and prevailing market conditions.

"Trunkline is uniquely positioned to connect various supply regions such as the Midcontinent, Texas and Gulf Coast, which also includes liquefied natural gas supplies, to growing markets," said Rob Bond, senior vice president of pipeline operations for Southern Union. "The VectorConnector would not only connect supplies with the upper Midwest demand, but with Michigan and Canadian storage hubs as well. This open season will give us an indication of the amount of capacity our customers are looking for and provide us with the information necessary to make a final investment decision."

Trunkline Gas began accepting requests at 9 a.m. CDT June 1, 2007, and the open season will continue until 3 p.m. CDT July 2, 2007. Precedent agreements executed by shippers as a result of this open season will be non-binding.

Shippers interested in participating in the open season may obtain further information or open season documents by contacting Greg Myers, director of business development, at 713.989.7640 or greg.myers@sug.com

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. The pipeline delivers up to 1.5 billion cubic feet per day of natural gas to Midwest and East Coast markets.

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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