October 1, 2008 Tres Palacios Gas Storage Commences Service

Wed, 01 Oct 2008 19:00:00 GMT

October 1, 2008--Tres Palacios Gas Storage LLC (Tres Palacios), a wholly owned subsidiary of NGS Energy, L.P., is pleased to announce that on October 1^st, the gas storage facility has started commercial operation. The project is in operations exactly one year from receipt of the FERC authorization to commence construction and has been completed on budget.

The highly interconnected and flexible FERC regulated facility is located in Matagorda County, Texas and has started allowing anchor shippers to inject gas into its first cavern which has approximately 12 BCF of storage capacity. Two additional caverns will come on line in 2009/2010 and when all three caverns are placed into service, the facility will have the capacity of approximately 36 BCF and the capability to inject up to 1 BCF/d and withdrawal up to 2.5 BCF/d.

Customers are also able to start utilizing other services available in Tres Palacios’ FERC Tariff such as Firm and Interruptible Park and Loans, No Notice, Balancing and Wheeling services.

“The commencement of commercial operations is a milestone for any project”, said Laura Luce, President of Tres Palacios, “and a significant day for our customers, vendors, employees and owners. I appreciate the trust, teamwork, focus and dedication of our team to execute such a truly extraordinary job.”

Tres Palacios is interconnected with 10 interstate and intrastate pipelines, including: Florida Gas, Transco, Tennessee, NGPL, CTGS, HPL, TETCO, Enterprise Texas, Enterprise Texas Intrastate and Kinder Morgan Tejas.

Tres Palacios is a wholly owned subsidiary of NGS Energy which develops and operates gas storage facilities in the United States. Other storage facilities in various stages of development include projects in Mississippi, Louisiana and Colorado.

For more information about Tres Palacios or any of the other projects, contact NGS at (203) 557-1000. For inquiries about short term services on Tres Palacios such as Park and Loans, No Notice, Balancing and Wheeling services, contact Rob Davis at (203) 557-1010. For long term capacity inquiries at any NGS project, please contact Mark McConnell at (203) 557-1013.

1-Oct-08 2:00 PM

NGS - Articles

October 1, 2008 Tres Palacios Gas Storage Commences Service