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AGL Resources Completes Sale of Saltville Interest, Virginia Gas Pipeline and Virginia Gas Storage to Duke Energy Gas Transmission

Posted on: Wednesday, 10 August 2005, 15:01 CDT

Atlanta-based AGL Resources (NYSE:ATG) today announced it has completed the sale of the company's 50 percent interest in Saltville Gas Storage Company, LLC (Saltville Storage), an interstate storage facility with approximately 2 billion cubic feet of capacity, as well as its wholly owned interests in Virginia Gas Pipeline and Virginia Gas Storage, to Duke Energy Gas Transmission (DEGT). With the sale, DEGT ownership increased from 50 percent to 100 percent in Saltville Storage.

AGL Resources acquired these assets, located in Virginia, in November 2004 when it purchased NUI Corporation (NUI). AGL Resources retains the local distribution company that it acquired in the NUI transaction, Virginia Gas Distribution Company, and also retains the name Virginia Gas Company under which this company currently operates.

AGL Resources received approximately $62 million in cash at closing and will use the proceeds to repay short-term indebtedness and for other general corporate purposes.

About AGL Resources

AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.3 million customers in six states through its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland. A Fortune 1000 company that ranks number 46 in the Fortune gas and electric utilities sector, AGL Resources reported 2004 revenue of $1.8 billion and net income of $153 million. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the East and Midwest. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix. 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.

About Duke Energy Gas Transmission

Duke Energy Gas Transmission is a North American leader in developing natural gas energy infrastructure, connecting major natural gas supply sources to growing markets. Based in Houston, Texas, the company's assets and operations include more than 17,500 miles of transmission pipeline and about 250 billion cubic feet of storage capacity in Canada and the United States along with gathering, processing and distribution operations in Canada. More information on DEGT can be found at: http://www.duke-energy.com/businesses/companies/degt.asp.

About Duke Energy

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com.

Source: Business Wire

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