WESTPORT, Conn., Aug. 8 /EMWNews/ -- Tres Palacios Gas Storage LLC,

a wholly owned subsidiary of Westport, CT-based NGS Energy LP announced

today the receipt of their first approval from the Federal Energy

Regulatory Commission (FERC) to commence service of the first cavern of the

facility.



    The FERC notice will allow Tres Palacios to start limited operations on

a portion of the system. Tres Palacios anticipates receiving FERC

permission to commence operations on the rest of the system by the end of

August, 2008 so that commercial activities may begin in September.



    The new high performance salt dome storage facility located in

Matagorda County, Texas will be interconnected with 10 interstate and

intrastate pipelines, including: Florida Gas, Transco (near Sta 30),

Tennessee, NGPL, CTGS (Transco/Tennessee), HPL, TETCO, Enterprise Texas,

Enterprise Texas Intrastate and Kinder Morgan Tejas.



    When all three caverns are placed into service, the facility will offer

36 BCF of working gas capacity to storage customers. The Project has been

authorized to inject up to 1 BCF/d and withdrawal up to 2.5 BCF/d.



    The company is also holding a binding open season for firm storage

capacity that is available April 1, 2009. The deadline for submitting bids

is September 4th. Any interested parties with questions concerning this

open season or general inquiries regarding firm capacity commitments may

contact Mark McConnell at (203) 557-1000 or see the information on their

Website: http://www.ngsenergy.com.