Bay Gas Completes Construction on 20-Inch Loop Pipeline.

Bay Gas Storage Company Ltd., a subsidiary of EnergySouth, Inc. (Nasdaq: ENCI), has completed construction of its 20inch steel loop pipeline north of Mobile.

The pipeline runs 11 miles between the storage facility's McIntosh, AL plant to near Mt. Vernon, where it interconnects with the Florida Gas Transmission pipeline.

"This new pipeline, which parallels a portion of our existing system, enhances Bay Gas' ability to take care of its customers' storage and transportation needs today and in the future," said Kit Brown, director of Engineering. "The project creates a great deal of flexibility for us, and allows us to deliver dramatically larger volumes of gas to our interconnects with Florida Gas Transmission and Gulf South Pipeline Company."

Bay Gas Storage is currently building a second salt dome storage cavern at its complex in McIntosh, Alabama. The new cavern will have a working-gas capacity of 3.5 million MMBtu, more than doubling Bay Gas' current capacity.

"The loop pipeline will compliment what our new cavern facility will be doing," said Gerry Keen, President of Bay Gas. "It reflects our commitment to offer the most flexible and responsive service to our customers."

Keen said the Bay Gas facilities are directly connected to the interstate pipeline systems of Florida Gas Transmission and Gulf South Pipeline Company, and to Mobile Gas Service Corp.

Bay Gas is a limited partnership that provides underground storage and the transportation and delivery of natural gas to customers in southwest Alabama and along the Florida Gas Transmission and Gulf South Pipeline Company systems.

Parent company, EnergySouth, Inc. (Nasdaq:ENSI), is the holding company for a family of energy businesses including Bay Gas, Mobile Gas Service Corp., EnergySouth Services, Inc., MGS Marketing, Inc., and Southern Gas Transmission.