On July 28, 2008, Sempra Energy and EnergySouth Inc. jointly announced a definitive merger agreement for Sempra Energy to acquire Mobile, Alabama-based EnergySouth.

This transaction will result in Sempra Energy’s acquisition of the following assets:

Mobile Gas Service Corp. – an Alabama natural gas distribution utility. Mobile Gas serves about 93,000 customers in southwest Alabama.

EnergySouth Midstream Inc. – a company that offers natural gas storage, pipeline transportation and other midstream related services. EnergySouth Midstream companies include:

• Bay Gas Storage Co. – a facility located 40 miles north of Mobile that provides underground storage and delivery of natural gas. Bay Gas has 11.4 billion cubic feet (Bcf) of working natural gas storage capacity that is fully contracted and operational. An additional 5 Bcf is 92 percent contracted and under construction with a scheduled first-quarter 2010 in-service date.
• Mississippi Hub, LLC – a company 60 percent owned by EnergySouth Midstream that is developing high-cycle, underground salt-dome natural gas storage in Simpson County, Miss. This facility has planned direct interconnections to the growing natural gas production areas in eastern Texas, Oklahoma and Arkansas, as well as the Northeast market. At this time, 6 Bcf of storage capacity is under construction. Operations are slated to begin in the second quarter of 2010.
• EnergySouth Services – an energy services provider that delivers physical natural gas products and provides risk management services to wholesale customers.
• Southern Gas Transmission – a company 51 percent owned by EnergySouth Midstream that is involved in the intrastate transportation of natural gas in Alabama. SGT operates 50 miles of intrastate pipeline from the facilities of Gulf South Pipeline Company near Flomaton, Alabama, to the facilities of Alabama River Pulp Company in Claiborne, Alabama.