For further information:

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

TRUNKLINE GAS COMPANY TO MOVE FORWARD WITH
NORTH TEXAS EXPANSION

HOUSTON - August 2, 2005 -Trunkline Gas Company is moving forward with its plans for a North Texas Expansion Project based on the market response from the open season that concluded Thursday.

"The response from potential customers definitely indicates a need to have additional pipeline capacity available to move more Texas natural gas eastward, which is exactly what this project is designed to do," said Rob Bond, president and chief operating officer of Panhandle Energy.

Trunkline has begun evaluating the bids from its customers for capacity on the pipeline and plans to move forward with the necessary precedent agreements. Given the high level of interest in the project, Trunkline will begin the National Environmental Policy Act Pre-Filing Review process to secure timely approval of the project by the Federal Energy Regulatory Commission.

The North Texas Expansion 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.

By expanding the system from Kountze to Longville, Trunkline will be able to receive onshore production originating in North and East Texas and from the proposed LNG terminals planned for the Texas Gulf Coast through existing or proposed intrastate pipeline and storage connections. These connections will likely include Energy Transfer Partners, L.P. (Houston Pipe Line Company - Texoma), Kinder Morgan Intrastate Pipeline, Enbridge Energy Partners, Centana Intrastate Pipeline, Inc. - Spindletop Storage (a subsidiary of Duke Energy Field Services, LP) and Enstor’s proposed Houston Hub.

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.

About Southern Union Company

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

Through Panhandle Energy, the Company owns and operates 100 percent 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 100 percent of 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 approximately 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

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