Golden Triangle Storage, Inc., a wholly-owned subsidiary of AGL Resources (NYSE ATG), today broke ground on its underground natural gas storage project located on the Spindletop salt dome on the southern edge of Beaumont in Jefferson County, Texas.

"This is an exciting day and we are thrilled to begin construction on this project," said Dana Grams, president of Pivotal Energy Development, the division of AGL Resources overseeing the Golden Triangle Storage project. "The project will add much-needed storage, enhance the region's growing energy infrastructure and provide local economic benefits."

Golden Triangle Storage will store natural gas in two caverns hollowed out of the Spindletop salt dome, approximately a half-mile to a mile below ground. It also will include an approximately nine-mile pipeline that will link the storage facility with nearby transmission pipelines to access natural gas supplies and deliver stored gas to market.

The Golden Triangle Storage project will increase storage capacity in Jefferson County, and is expected to enhance the area's position as a national energy hub and increase the functionality of both its existing and planned energy infrastructure. The project will give customers high-deliverability storage at a liquid market point; easy access to multiple supply sources, including liquefied natural gas imports; and potential interconnections to six existing and planned pipelines serving diverse markets with counter-seasonal demand.

The company plans to initially offer up to 12 billion cubic feet (Bcf) of working gas capacity in two caverns. By adding caverns, the project could continue growing to a maximum of 28 Bcf in capacity in future years.

"The Golden Triangle Storage project is an attractive option to serve customers' growing needs for natural gas storage in the region," said John W. Somerhalder II, chairman, president and CEO of AGL Resources. "Because of its proximity to new sources of supply and its ability to serve diverse markets with high deliverability, the project offers customers significant market advantages."

Initial commercial operations are slated to begin in late 2010 to early 2011, with a second cavern expected to come online in 2012.

Project details can be found on the company's Web site at www.goldentrianglestorage-texas.com.

About AGL Resources

AGL Resources , an Atlanta-based energy services company, serves more than 2.2 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the nation. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.

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SOURCE: AGL Resources