Exhibit
      99.1




06-03
 For
        further information:
 Media:
        Gina Taylor, Director of Corporate Communications
 713-989-7556
 
 Investors:
        John F. Walsh, Director of Investor Relations
 800-321-7423
 
 
 **SOUTHERN
        UNION COMPANY**
 **COMPLETES
        SID RICHARDSON ACQUISITION**
 
 
 HOUSTON,
        March 2, 2006 - Southern Union Company (NYSE:SUG) today announced it has
        completed the previously-announced acquisition of the Sid Richardson Energy
        Services business. The acquired business will be known as Southern Union
        Gas
        Services.
 
 The
        $1.6
        billion acquisition was funded through a bridge loan, which the company expects
        to retire with proceeds from various asset dispositions and debt and/or equity.
        To help finance the acquisition, Southern Union announced earlier this year
        that
        it has entered into agreements to sell its PG Energy distribution division
        in
        Pennsylvania to UGI Corporation for $580 million and the Rhode Island assets
        of
        its New England Gas Company division to National Grid USA for $575 million,
        less
        assumed debt of $77 million. Both sales are expected to close by the end
        of the
        third quarter.
 
 “We
        welcome the Southern Union Gas Services employees and customers to the Southern
        Union family,” said George L. Lindemann, chairman, president and CEO of Southern
        Union. “We believe this acquisition will be immediately accretive to our
        earnings, and we will now focus on the successful integration of these assets
        into Southern Union Company.”
 
 “The
        closing of this acquisition demonstrates Southern Union’s ongoing transformation
        into a higher return business with significant growth opportunities,” said Eric
        D. Herschmann, senior executive vice president of Southern Union.
 
 The
        acquired assets include approximately 4,600 miles of natural gas and natural
        gas
        liquids pipelines in the Permian Basin, fully integrated North and South
        systems
        connected by a high-pressure pipeline, four active cryogenic plants and six
        active natural gas treating plants. The primary activities of Southern Union
        Gas
        Services include connecting wells of natural gas producers to its gathering
        system, treating natural gas to remove impurities to meet pipeline quality
        specifications, processing natural gas for the removal of natural gas liquids,
        transporting natural gas and redelivering natural gas and natural gas liquids
        to
        a variety of markets. Primary customers include power generating companies,
        utilities, energy marketers and industrial users located in the southwestern
        United States. Southern Union Gas Services will remain based in Fort Worth,
        Texas.
 
 **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.
 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,
        Mobile Bay, 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 4,600 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, PG Energy and New
        England
        Gas Company, Southern Union also serves approximately one million natural
        gas
        end-user customers in Missouri, Pennsylvania, Rhode Island 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.
 
 
 
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