AGL Resources and Enron Terminate Virginia Natural Gas Asset Management Agreement.

November 30, 2001

ATLANTA, GEORGIA – AGL Resources Inc. (NYSE: ATG) today announced that Sequent Energy Management, its wholly owned asset optimization subsidiary with a large portfolio of assets under management in the Southeast, has reached an agreement with Enron for early termination of an asset management contract related to Virginia Natural Gas (VNG), also a wholly owned subsidiary of AGL Resources.

The two-year asset management contract, which became effective in December 2000, authorized Enron to manage a comprehensive portfolio of natural gas supply, transmission and other energy services for Sequent, on behalf of Virginia Natural Gas. Under the termination agreement, Sequent will assume the role of asset manager for Virginia Natural Gas, effective December 1, 2001.

“We are pleased that we have reached a mutually satisfactory agreement with Enron to ensure that VNG customers continue to receive the benefits that a strong asset manager can provide,” said Richard T. O’Brien, executive vice president and chief financial officer of AGL Resources. “Although our exposure to the Enron situation is minimal, this agreement will further mitigate any future exposure with regard to management of the VNG assets.”

“With the return of management responsibility for the VNG assets and gas supply contracts to Sequent, Enron has helped to ensure that its financial difficulties will not impact VNG and its customers,” said Rick Duszynski, president and chief executive officer of Sequent Energy Management. “Additionally, as a large regional natural gas marketing company, Sequent will be able to seamlessly step into the asset manager role and continue to provide these services to VNG as well as others throughout the Southeast. We appreciate Enron’s cooperation in making this a smooth transition.”