Sequent Energy Management's Natural Gas Business Climbs to nearly 3 BCF Daily in Company's First

Markets validate Sequent's "Kinder, Gentler" business model

May 2, 2002
HOUSTON, TEXAS (May 2, 2002) - Sequent Energy Management, the wholesale marketing and asset optimization arm of AGL Resources Inc. (NYSE: ATG), said today it completed its first year in business with average physical natural gas trading volumes in the range of 3 billion cubic feet (Bcf) per day. 

For February and March this year, Sequent's daily physical natural gas volumes traded were 2.9 Bcf and 2.7 Bcf respectively, increasing to 3.1 Bcf for the opening days of April.

AGL Resources established Sequent Energy Management on March 20, 2001, and Sequent opened its trading floor in July on downtown Houston's "Energy Row" at 1000 Louisiana Street. Sequent's goal is to provide a growth engine for its parent company as it builds a more liquid and transparent energy market in the Southeastern United States.

"We are delighted to have been able to build such strong relationships in the natural gas business in such a short period of time," said Richard J. Duszynski, Sequent's president and chief executive officer. "We set out to build Sequent's business around long-term relationships based on trust. To do that, we created a business environment that would attract to our new company some of the industry's most aggressive, connected and smart energy professionals. Obviously, our clients and trading partners have responded positively."

As part of its business, Sequent manages assets for AGL Resources' utility subsidiaries, including Virginia Natural Gas, Chattanooga Gas, and Atlanta Gas Light Company, providing Sequent opportunities in the Southeastern United States. In addition, Sequent plans to offer asset management services to other third parties.

Duszynski said Sequent's timing of entry into the market and its ability to attract first-rate employees were major factors in its success. The company met all performance objectives in its first six months, including staffing, creation of an active trading floor and full development of an information systems infrastructure.

Concurrent with Sequent's planned growth in November 2001, the natural gas markets were shaken by Enron's collapse. As a result, Sequent's business increased dramatically, by 300 percent in December 2001 and by another 25 percent in January this year as trading volumes topped 2.5 Bcf/daily.

In response, by February Sequent nearly doubled the space on its trading floor and increased its information systems capabilities to serve more than 120 vetted counterparties and 15 major pipelines with which it does business.

Duszynski observes that after the Enron collapse there was a "flight to quality" as producers sought stable, creditworthy counterparties and new relationships with experienced and long-standing utilities. Commenting he said, "Sequent can provide such a business relationship because of its ownership by AGL Resources, which has more than 150 years experience in the natural gas industry and a long history of financial stability."

"We set out to create a 'kinder, gentler' type of natural gas wholesale trading and asset optimization company," Duszynski said. "As it turned out, our timing could not have been better. When opportunity knocked, we were ready."

About Sequent Energy Management

Sequent Energy Management, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), is a Houston-based entity focusing on asset management and the wholesale trading, marketing, gathering and transporting of natural gas. Sequent is rapidly positioning itself as a dominant niche player in the Southeastern United States natural gas market. For more information, visit www.sequentenergy.com.

About AGL Resources

AGL Resources Inc. is a regional holding company for energy and infrastructure related businesses in the Southeast. The company is the second largest natural gas-only distribution company in the United States and serves nearly 1.8 million customers throughout Georgia, Chattanooga and Southeastern Virginia. AGL Resources also is engaged through subsidiaries and partnerships in other businesses, including retail energy marketing, wholesale energy services and telecommunications infrastructure. For more information, visit www.aglresources.com.