Leaf River Announces Open Season and Anchor Tenant

WESTPORT, Conn., May 29 /PRNewswire/ — Independent natural gas storage developer, NGS Energy, LP announced today that it will hold a binding Open Season for natural gas storage services to be provided by Leaf River Energy Center, a new salt cavern natural gas storage facility located in Smith County, Mississippi. The Open Season will commence June 1, 2009 and will end on June 16, 2009.

Leaf River commenced construction on the storage caverns in January, 2009. The storage facility will provide up to 32 Bcf of working gas capacity and will offer injection capability of up to 1 Bcf/d and withdrawal capability of up to 2.5 Bcf/d. Leaf River will have a 43 mile pipeline header system that will offer interconnects with Southern Natural Gas Company, Gulf South, Transco, Tennessee, Destin and KM Midcontinent Express pipelines.

NGS Energy is proud to announce that we have signed a Firm Storage Service Precedent Agreement with SOUTHERN COMPANIES SERVICES, INC, (as Agent for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Power Company) for a 15 year term for 3 Bcf in Phase I and 3 Bcf in Phase II at the Leaf River Energy Center.

“We are extremely proud to partner with Southern Companies Services, Inc, and feel that this partnership further validates the need for high deliverability, flexible, and economically priced storage in Mississippi”, said Laura Luce, President of Leaf River Energy Center.

NGS Energy Center has assembled a portfolio of highly flexible gas storage assets throughout North America and is currently engaged in various stages of development in Colorado, Louisiana and Arizona.

Parties interested in contracting for storage capacity or learning more about the Leaf River Energy Center are encouraged to contact Patrice Thurston at 203-557-1000 or pthurston@ngsenergy.com

SOURCE NGS Energy, LP