AGL Resources and Enron Terminate Virginia Natural Gas Asset Management Agreement.

Business Editors

ATLANTA--(BUSINESS WIRE)--Nov. 30, 2001

AGL Resources Inc. (NYSE: ATG) today announced that Sequent Energy Management, its wholly owned asset optimization subsidiary with a large portfolio of assets under management in the Southeast, has reached an agreement with Enron for early termination of an asset management contract related to Virginia Natural Gas (VNG), also a wholly owned subsidiary of AGL Resources.

The two-year asset management contract, which became effective in December 2000, authorized Enron to manage a comprehensive portfolio of natural gas supply, transmission and other energy services for Sequent, on behalf of Virginia Natural Gas. Under the termination agreement, Sequent will assume the role of asset manager for Virginia Natural Gas, effective December 1, 2001.

"We are pleased that we have reached a mutually satisfactory agreement with Enron to ensure that VNG customers continue to receive the benefits that a strong asset manager can provide," said Richard T. O'Brien, executive vice president and chief financial officer of AGL Resources. "Although our exposure to the Enron situation is minimal, this agreement will further mitigate any future exposure with regard to management of the VNG assets."

"With the return of management responsibility for the VNG assets and gas supply contracts to Sequent, Enron has helped to ensure that its financial difficulties will not impact VNG and its customers," said Rick Duszynski, president and chief executive officer of Sequent Energy Management. "Additionally, as a large regional natural gas marketing company, Sequent will be able to seamlessly step into the asset manager role and continue to provide these services to VNG as well as others throughout the Southeast. We appreciate Enron's cooperation in making this a smooth transition."

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 more than 1.8 million customers throughout Georgia; Chattanooga, Tennessee; and southeastern Virginia. AGL Resources also is engaged through subsidiaries and partnerships in other businesses, including telecommunications, retail energy marketing, wholesale energy services, and wholesale and retail propane sales. More information about the company is available on the Internet at www.aglresources.com.

Sequent Energy Management, a wholly owned subsidiary of AGL Resources Inc., is a Houston-based entity focusing on asset management and the wholesale trading, marketing gathering and transportation 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.