Houston-Based Sequent Energy Management Says Gas Producers Seeking Closer Relationships With Utilities

Trading volumes increase dramatically for asset management company

December 13, 2001
HOUSTON – Sequent Energy Management, the wholesale marketing and supply arm of Atlanta-based AGL Resources Inc. (NYSE: ATG), announced today that its business volumes have risen nearly 300 percent since Enron filed for bankruptcy protection earlier this month.

In December, Sequent is trading a daily average of almost 2 million MMBtus daily across 13 pipelines and with more than 100 counterparties. This compares to about 500,000 MMBtus moved daily during November.

"These new volumes are being driven by natural gas producers who want to bypass the mega - marketers and build closer relationships with end-users," said Richard J. Duszynski, president and chief executive officer of Sequent Energy Management. "It is natural that they come to Sequent because our parent company is a natural gas utility holding company."

"Obviously market dynamics have changed dramatically," Duszynski said, "and natural gas producers are finding stable utility and commercial customers to be very attractive business partners."

This new volume of business allows Sequent to diversify its regional business activities in order to realize increased revenues and profits from trading and marketing of producers' gas across 13 pipelines. It also supports Sequent's goal of expanding its asset optimization presence throughout multiple states in the Southeast and creating a more liquid market for gas in the region.

Energy buyers and sellers are contacting Sequent partially because of the company's financial stability based on its ownership by AGL Resources, which has more than 150 years of experience in the industry.

Sequent is already expanding its recently completed trading floor and business offices at 1000 Louisiana Street in Houston. As part of its business, Sequent manages assets for AGL Resources' utility subsidiaries, including Atlanta Gas Light Company serving more than 1.5 million residential, commercial and industrial users in Georgia; Virginia Natural Gas with more than 230,000 customers in Southeastern Virginia; and Chattanooga Gas Company which provides retail natural gas sales and transportation services to approximately 60,000 customers in Tennessee.

"The recent increase of almost 1.5 MMBtus daily in business activity has come largely from new producers seeking stable, creditworthy counterparties and new relationships with utilities," said Claude Straub, Sequent's senior vice president for commercial operations.

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.