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Southern Union Companya?s Trunkline Gas Pipeline Signs Long-Term Transportation Agreement with DCP Midstream

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  Published in Business and Finance on Tuesday, October 26th 2010 at 13:16 GMT by Market Wire
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HOUSTON--([ BUSINESS WIRE ])--Southern Union Company (NYSE:SUG) today announced that its Trunkline Gas Company subsidiary has signed a precedent agreement with DCP Midstream, LLC to provide long-term, firm transportation service on a portion of Trunklinea™s pipeline system in South Texas.

"It will provide for Eagle Ford shale production to be brought to market by using Trunklinea™s South Texas System to its full capacity."

Trunkline Gas will file with the Federal Energy Regulatory Commission (FERC) to make changes to the southernmost segment of its pipeline in Texas to provide DCP with transportation service for liquids-rich gas from the Eagle Ford shale in South Texas. As proposed, Trunkline would isolate its South Texas system at the Edna compressor station in Jackson County, Texas, and modify its facilities to allow bi-directional flow and the transportation of liquids-rich gas. In addition, Trunkline will seek FERC approval to make certain gas quality changes in its Gas Tariff.

DCP has five gas processing plants in South Texas, three of which can currently access Trunkline Gas. DCP plans to build pipelines to connect its remaining two South Texas plants to the Trunkline Gas system.

aSouthern Union looks forward to completing this long-term, firm transportation agreement with DCP,a said Mike Moran, vice president and chief commercial officer for Southern Uniona™s pipeline group. aIt will provide for Eagle Ford shale production to be brought to market by using Trunklinea™s South Texas System to its full capacity.a

About Southern Union Company

Southern Union Company, headquartered in Houston, is one of the nationa™s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nationa™s largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and one of North Americaa™s largest liquefied natural gas import terminals, along with serving more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit [ www.sug.com ].