EnergySouth Midstream Receives Requests for Over 20 Billion Cubic Feet (Bcf) of Natural Gas Storage Capacity at Mississippi Hub

  
    
  
  
    
      EnergySouth Midstream received expressions of interest for over 20 Bcf 
      of natural gas storage capacity or more than three times the capacity 
      that will be available at the first cavern under development at the 
      Mississippi Hub natural gas storage facility in response to the company’s 
      recent open season.
    
    
      Mississippi Hub will provide high deliverability storage services to 
      customers seeking to manage the delivery of natural gas supplies to 
      markets in the southeast and east coast regions of the United States. “The 
      robust expression of interest validates our belief that this project is 
      in the right place at the right time and will provide a much needed 
      addition to the existing natural gas infrastructure,” 
      said Russell Murrell, Vice President Marketing EnergySouth Midstream, 
      Inc.
    
    
      The company is preparing a filing to seek authority to amend its 
      existing FERC certificate. The filing will include a 1.5 Bcf expansion 
      of capacity for each permitted cavern at Mississippi Hub and expansion 
      of the pipeline header system to include interconnects with the Transco 
      and SESH pipeline systems. Mississippi Hub currently holds FERC 
      certificates for the development and operation of two salt dome caverns 
      with a combined total working gas capacity of 12.0 Bcf and the 
      construction of a pipeline interconnect with Sonat. If approved, the 3 
      Bcf expansion would increase Mississippi Hub’s 
      permitted capacity to a total of 15.0 Bcf.
    
    
      EnergySouth Midstream conducted an open season from January 7, 2008 
      through January 25, 2008 for 12.0 Bcf capacity related to two caverns to 
      be developed at Mississippi Hub. Mississippi Hub’s 
      first cavern is expected to be operational by the fourth quarter of 
      2009. The company’s second cavern has a 
      planned in-service date of mid 2011.
    
    
      When construction of the facility is completed, Mississippi Hub will 
      allow access to traditional gas supplies in the Gulf of Mexico and along 
      the Gulf Coast as well as emerging production from the Barnett Shale, 
      east Texas and northern Louisiana. The facility’s 
      location is also in close proximity to interstate pipelines and pipeline 
      expansion projects accessing major natural gas markets including: SONAT, 
      Crosstex, SESH, Transco, GulfSouth, and the KinderMorgan/Energy Transfer 
      Partners Midcontinent Express.
    
    
      EnergySouth Midstream, Inc. is a subsidiary of EnergySouth, Inc. 
      (NASDAQ: ENSI)(www.energysouth.com). 
      EnergySouth, Inc. is the parent company of a group of energy related 
      subsidiaries operating in the midstream and distribution segments of the 
      natural gas industry.