AGL Resources completes Magnolia pipeline linking Georgia customers to Elba Island LNG terminal

Project enhances long-term diversity, reliability of natural gas supply

ATLANTA – November 2, 2009 – AGL Resources (NYSE: AGL) today announced the completion of its Magnolia Pipeline Project, connecting the company’s Georgia service territory to liquefied natural gas (LNG) imports arriving at the Elba Island terminal near Savannah, Ga.

“We currently receive the majority of our natural gas supply in Georgia from a production region in and around the Gulf of Mexico, and – until the recent economic slowdown – demand for this natural gas has grown faster than supply,” said Ralph Cleveland, executive vice president, Engineering and Operations.

“The Magnolia pipeline project, which was part of a capacity supply plan approved by the Georgia Public Service Commission, will position our Atlanta Gas Light business to meet future increases in natural gas demand once the local economy recovers,” Cleveland said.

The project offers other benefits, as well.

“Gaining access to Elba Island LNG deliveries is part of our long-term plan to achieve greater diversity of natural gas supply, which will provide local customers with increased reliability of service in the event that supplies coming from the Gulf Coast are disrupted,” said Hank Linginfelter, executive vice president, Utility Operations.

“The Magnolia project also enables us to provide more than 83,000 dekatherms per day of capacity to customers in Georgia at a potential discount compared with the cost of long-haul supplies delivered from the Gulf Coast,” Linginfelter said. “That’s enough supply to serve 63,000 Georgia homes with clean-burning, efficient natural gas on the coldest day of the year.”

In 2008, the Federal Energy Regulatory Commission approved a joint application by Magnolia Enterprise Holdings, a wholly owned subsidiary of AGL Resources, and Southern Natural Gas, a subsidiary of El Paso Corporation (NYSE: EP), which authorizes Magnolia to obtain an undivided interest in pipelines owned by Southern Natural Gas connecting Atlanta Gas Light’s Georgia service territory to the Elba Island LNG facility.

Under the agreement, Magnolia Enterprise Holdings would own the undivided interest and, in turn, lease the interest to Southern Natural Gas. Also under the agreement, Magnolia Enterprise Holdings would acquire from Atlanta Gas Light an interest in a portion of the Atlanta Gas Light owned Brunswick Pipeline, extending from Glynn County to Laurens County.  Magnolia Enterprise Holdings also would lease this interest in the Brunswick Pipeline to Southern Natural Gas.

Going forward, Atlanta Gas Light will subscribe to the associated pipeline capacity from Southern Natural Gas.

About AGL Resources

AGL Resources (NYSE: AGL), an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As a current 70-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.