Liquefied Natural Gas

The Elba Island LNG terminal is located near Savannah, Georgia. The Elba Island LNG terminal has 7.3 billion cubic feet, or Bcf, of LNG storage capacity and 1,755 million cubic feet per day, or MMcf/d of peak vaporization send-out capacity. The Elba Island LNG terminal is directly connected to four major pipelines and indirectly to two others, and thus is readily accessible to the southeast and mid-Atlantic markets.

SLNG’s Elba Phase IIIA Expansion project currently underway has increased SLNG’s peak vaporization send-out capacity to 1,755 MMcf/d from 1,215 MMcf/d and is expected to increase storage capacity at the Elba Island LNG terminal to 11.5 Bcf by August 2010.

The Elba Phase IIIB Expansion project would further increase storage capacity at the Elba Island LNG terminal to 15.7 Bcf and peak vaporization send-out capacity to 2,115 MMcf/d. During the second quarter of 2009, British Gas’ subsidiary, BG LNG Services LLC, or BG, SNG, Elba Express and SLNG entered into agreements to delay the in-service date of the Elba Phase IIIB Expansion project at BG’s option, to as late as December 31, 2014 or, if BG is unable to meet certain conditions, to terminate the Elba Phase IIIB Expansion project.

SNG operates the Elba Island LNG terminal pursuant to a service agreement with SLNG.

*Cautionary Statement Regarding Forward-looking Statements