HOUSTON -- - Agreements made for Mississippi Natural Gas storage facility

HOUSTON -- SGR Holdings, L.L.C. has announced that its subsidiary, SG Resources Mississippi, L.L.C., (SGRM) has executed bi-directional pipeline interconnect agreements with Gulfstream Natural Gas System, L.L.C. and Transcontinental Gas Pipeline Corporation (Transco) as part of its plans to build the Southern Pines Energy Center, a new high- deliverability salt cavern natural gas storage facility to be located in Greene County, Mississippi.

Southern Pines has received its Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission under Section (7) of the Natural Gas Act, authorizing construction and operation of the Southern Pines Energy Center. SGRM previously executed two pipeline interconnect agreements with Florida Gas Transmission Company (FGT) and Destin Pipeline.

According to Mark D. Cook, Principal of SGR Holdings, higher natural gas prices and price volatility, resulting from a fundamental shift in the supply and demand balance, have created the need for greater flexibility from assets. "Now, more than ever, the energy marketplace needs assets that can react to the variable nature of demand and supply," he said.

"With LNG imports becoming part of the long-term supply scenario, the Southern Pines Energy Center, with its multiple direct pipeline interconnects, is ideally located to serve as a supply and storage market hub serving the southeastern, Mid- Atlantic and northeastern United States."

When completed in 2005, the facility will provide 12 billion cubic feet (Bcf) of storage in two caverns that will be capable of supporting natural gas withdrawal rates of up to 1.2 Bcf per day and injection rates of up to 0.6 Bcf per day. The Southern Pines facility will have dual 24-inch, bi-directional interconnects to FGT near Station 11, Gulfstream at Station 100, Destin, and Transco's Mobile Bay lateral line with access to Station 85. Southern Pines will also provide in-direct access to the Southern Natural Gas, Tennessee Gas Pipeline, FGT, Gulfstream and Gulf South Pipeline systems from its interconnect with the Destin Pipeline.

Southern Pines Energy Center has been authorized to offer firm and interruptible firm storage services at "market-based" rates allowing services to be custom designed to meet the needs of individual customers.

SGR Holdings, L.L.C., a Houston-based company, develops, owns, and operates high-deliverability, salt cavern, natural gas storage facilities.