06-18
 For
        further information:
 Investors:
        John F. Walsh
 Director
        of Investor Relations
 Southern
        Union Company
 1-800-321-7423
 
 Media:
        John P. Barnett
 Director
        of External Affairs
 713-989-7556






**SOUTHERN
      UNION ANNOUNCES TRANSACTIONS**


**AFFECTING
      OWNERSHIP OF FLORIDA GAS AND TRANSWESTERN**






HOUSTON,
      September 15, 2006 - Southern Union Company (NYSE:SUG) today announced a series
      of transactions designed to result in Southern Union owning a 50% interest
      in
      Florida Gas Transmission and eliminating its ownership interest in Transwestern
      Pipeline.  To effect these transactions, Energy Transfer Partners, L.P.
      (NYSE:ETP) has entered into an agreement to acquire the 50% Class B membership
      interest in CCE Holdings, LLC (CCEH) from GE Energy Financial Services and
      other
      investors.  CCEH was formed in 2004 to purchase CrossCountry Energy from
      Enron Corp. and its affiliates.




Additionally,
      Energy Transfer and CCEH have entered into a Redemption Agreement whereby Energy
      Transfer’s 50% ownership interest will be redeemed in exchange for 100% of the
      equity interests in Transwestern Pipeline Company, LLC.  Upon closing of
      both transactions, CCEH will be 100% owned by wholly-owned subsidiaries of
      Southern Union, will own 50% of Citrus Corp., the holding company for Florida
      Gas Transmission, and will be responsible for approximately $455 million in
      indebtedness.  The remaining 50% of Citrus Corp. is owned by an affiliate
      of El Paso Corp.


“We
      see
      several benefits to these transactions,” said George L. Lindemann, Southern
      Union Company chairman, president and CEO.  “With our increased investment
      in Florida Gas, we are upgrading our risk profile, enhancing our strategic
      position, and preserving our capital while still allowing us to grow well into
      the future in the strong Florida market.”  Eric D. Herschmann, senior
      executive vice president of the company, added, “Transwestern Pipeline has more
      strategic value to Energy Transfer, and we believe that in the capable hands
      of
      ETP Transwestern will continue to be a key component of the energy
      infrastructure in the southwestern United States.”




From
      an
      operating perspective, the company expects the transactions to be approximately
      neutral on near-term earnings per share.




The
      transactions are expected to close in the fourth quarter of 2006 pending receipt
      of necessary regulatory approvals and other customary closing conditions. 
The CCEH transactions follow the March 1, 2006 closing of Southern Union’s $1.6
      billion acquisition of the Sid Richardson Energy Services natural gas gathering
      and processing business and the August 24, 2006 divestitures of Southern Union’s
      Pennsylvania and Rhode Island natural gas local distribution companies for
      $1.15
      billion.




**About
      Southern Union Company**




Southern Union Company, headquartered in Houston, is one of the nation’s leading
      diversified natural gas companies, engaged primarily in the transportation,
      storage, gathering, processing and distribution of natural gas.  The
      company owns and operates the nation’s second largest natural gas pipeline
      system with more than 22,000 miles of gathering and transportation pipelines
      and
      North America’s largest liquefied natural gas import terminal.


Through Panhandle Energy, Southern Union’s interstate pipeline interests operate
      approximately 18,000 miles of interstate pipelines that transport natural gas
      from the San Juan, Anadarko and Permian Basins, the Rockies, the Gulf of Mexico,
      South Texas and the Panhandle regions of Texas and Oklahoma to major markets
      in
      the Southeast, West, Midwest and Great Lakes region.


Southern Union Gas Services, with approximately 4,800 miles of pipelines, is
      engaged in the gathering, transmission, treating, processing and redelivery
      of
      natural gas and natural gas liquids in Texas and New Mexico.


Through its local distribution companies, Missouri Gas Energy and New England
      Gas Company, Southern Union also serves approximately half a million natural
      gas
      end-user customers in Missouri and Massachusetts.


For further information, visit www.sug.com .




**Forward-Looking
      Information**




This news release includes forward-looking statements.  Although Southern
      Union believes that its expectations are based on reasonable assumptions, it
      can
      give no assurance that such assumptions will materialize.  Important
      factors that could cause actual results to differ materially from those in
      the
      forward-looking statements herein are enumerated in Southern Union’s Forms 10-K
      and 10-Q as filed with the Securities and Exchange Commission.  The Company
      assumes no obligation to publicly update or revise any forward-looking
      statements made herein or any other forward-looking statements made by the
      Company, whether as a result of new information, future events, or
      otherwise.