PAA Natural Gas Storage, L.P. (NYSE: PNG) today announced the formation of a commercial optimization group and related officer appointments. Benjamin J. Reese has joined PNG as Senior Vice President, Commercial and W. Todd Brown has joined as Vice President, Optimization.

“The formation of a commercial optimization group is a significant milestone in the continued growth and development of PNG,” said Dean Liollio, President of PAA Natural Gas Storage. “In addition to benefiting our unitholders by optimizing the value of our natural gas storage assets and related services, this group will also enable us to better serve our customers by providing them with increased liquidity and flexibility as well as problem-solving capabilities.” Liollio noted that the activities of the commercial optimization group will be similar to the low risk, hedged activities successfully employed in the crude oil business by Plains All American Pipeline, L.P. – PNG’s general partner and 77% equity owner – and is consistent with PNG’s basic commercial strategy of committing a high percentage of its storage capacity under multi-year firm storage contracts.

Mr. Reese has 30 years of experience in the natural gas industry. Prior to joining PAA Natural Gas Storage, he was President of Sempra Midstream since October 2008. From 2007 to October 2008, Mr. Reese served as President and Chief Operating Officer of EnergySouth Midstream, Inc. – the natural gas storage, pipeline transportation and midstream services subsidiary of EnergySouth, Inc., which was acquired by Sempra in October 2008. From 1998 to 2007, he served as Senior Vice President and Chief Commercial Officer for CenterPoint Energy. Prior to joining CenterPoint Energy, Mr. Reese spent 18 years in positions of increasing responsibility with USX-Delhi Pipelines and successor companies. Mr. Reese is a former board member of the National Energy Services Association and a current board member of the Southern Gas Association. Mr. Reese holds a Bachelor of Science degree in Chemical Engineering from Texas A&M University.

Mr. Brown has over 20 years of experience in the natural gas industry. Prior to joining PAA Natural Gas Storage, he was Vice President–Commercial of Sempra Pipelines & Storage since October 2008. From 2007 to October 2008, Mr. Brown served as Vice President–Commercial of EnergySouth Midstream, Inc. From 2003 to 2007, he served as Vice President–Natural Gas Trading for CenterPoint Energy. From 1988 to 2003, Mr. Brown served in various capacities in the natural gas businesses of several companies, including Mirant, Coral Energy, USX-Delhi Pipelines, Lone Star Gas and Santa Fe Minerals. Mr. Brown holds a Bachelor of Business Administration degree from Stephen F. Austin State University.

“Our customers will continue to receive the high level of service they have come to rely on at our Pine Prairie and Bluewater facilities from our current team of commercial and operating professionals led by Richard Tomaski, Dan Noack, John Reid and Brad Ledbetter,” said Liollio. “The addition of Ben and Todd to this already talented team of individuals further enhances our capabilities and the foundation for future growth at PNG.”

PAA Natural Gas Storage, L.P. is a publicly traded master limited partnership engaged in the development, acquisition, operation and commercial management of natural gas storage facilities. The Partnership currently owns and operates two natural gas storage facilities located in Louisiana and Michigan that have an aggregate working gas storage capacity of approximately 50 Bcf. The Partnership’s general partner, as well as the majority of the Partnership’s limited partner interests, is owned by Plains All American Pipeline, L.P (NYSE: “PAA”). The Partnership is headquartered in Houston, TX.

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