Southern Company Gas
| Company type | Holding company |
|---|---|
| Industry | Energy services, Natural gas distribution |
| Predecessor | AGL Resources |
| Founded | 1856 |
| Headquarters | Atlanta , United States |
Area served | United States (Illinois, Georgia, Virginia, Tennessee) |
Key people | Jim Kerr (Chairman, President & CEO), Grace Kolvereid (EVP & CFO) |
| Products | Natural gas distribution, wholesale, retail, midstream services |
Number of employees | 6,094 |
| Parent | Southern Company |
Southern Company Gas, previously known as AGL Resources, is a Fortune 500 holding company specializing in energy services, headquartered in Atlanta, Georgia. The firm operates across natural gas distribution, wholesale, retail, and midstream markets. It ranks among the top natural gas distributors in the United States, providing service to roughly 4.5 million utility customers through its regulated subsidiaries spanning four states. Southern Company Gas was listed on the Fortune 500 in 2015, featured in the Forbes Global 2000 in 2006, and is included in the S&P 500 Index. In 2016, Southern Company acquired AGL Resources and subsequently rebranded it as Southern Company Gas.
Distribution operations
The distribution segment of Southern Company Gas comprises four utility companies that supply natural gas to about 4.5 million customers, representing the company’s largest business division. As of February 2014, these utilities include Nicor Gas in Illinois, Atlanta Gas Light in Georgia, Virginia Natural Gas in Virginia, and Chattanooga Gas in Tennessee. These subsidiaries oversee intrastate pipelines, manage distribution and storage facilities, conduct leak repairs, and perform meter reading services. Although most customers purchase gas directly from these utilities, deregulation permits some Illinois customers and all Georgia customers to select retail marketers.
Key services provided by these subsidiaries include:
- Maintenance of infrastructure
- Leak detection and repair
- Sale of natural gas to residential, commercial, and industrial users (excluding Atlanta Gas Light)
- Customer service and billing functions (excluding Atlanta Gas Light)
- Online resources for customers regarding natural gas and associated products
Atlanta Gas Light
Based in Atlanta, Atlanta Gas Light is the largest natural gas distributor in the Southeastern United States. Established in 1856 originally to install gas street lighting, it now serves over 1.6 million customers across more than 200 communities throughout Georgia. Its offerings encompass infrastructure upkeep, leak response services, and meter reading.
Chattanooga Gas
Serving around 62,000 customers within Hamilton and Bradley counties in Tennessee, Chattanooga Gas was founded in 1890 and is headquartered in Chattanooga, Tennessee. It became part of Atlanta Gas Light’s portfolio following its acquisition in 1988.
Nicor Gas
Established in 1955, Nicor Gas stands as northern Illinois' largest distributor of natural gas, catering to approximately 2.2 million customers across over 650 communities through a distribution network exceeding 34,000 miles connected to eight interstate pipelines. AGL Resources finalized its purchase of Nicor Inc. in December 2011.
Virginia Natural Gas
Founded in 1850, Virginia Natural Gas (VNG) serves more than 275,000 residential, commercial, and industrial clients throughout southeastern Virginia, including areas such as Norfolk, Virginia Beach, Chesapeake, Suffolk, Hampton, Newport News, Williamsburg, and Hanover Counties. It ranks among the fastest-expanding natural gas distributors nationwide.
VNG operates a high-pressure intrastate pipeline extending roughly 150 miles from Quantico to Williamsburg and manages two propane storage and vaporization facilities along with an LNG plant located in James City County and Chesapeake to enhance gas supply capabilities.
Originally part of Dominion Virginia Power’s natural gas operations, VNG was sold to Consolidated Natural Gas in 1990. Following CNG’s acquisition by Dominion in 2000, VNG was divested to AGL Resources.
Wholesale operations
Wholesale operations primarily concentrate on natural gas storage, pipeline arbitrage, and asset management services provided to Southern Company Gas utilities as well as external clients.
Nicor Enerchange
Launched in 1998 as the Illinois division of Sequent Energy Management, Nicor Enerchange offers wholesale natural gas procurement solutions tailored for commercial and industrial customers throughout the Midwest region.
Jefferson Island Storage & Hub
Located near Erath, Louisiana, Jefferson Island Storage & Hub (JISH) manages two salt dome caverns with a total storage capacity of 9.4 billion cubic feet. These caverns connect to pipelines linked to the Henry Hub via the Sabine pipeline, facilitating regional natural gas distribution.
Liquefied natural gas (LNG)
Southern Company Gas owns four LNG peak-shaving facilities designed to provide gas during periods of high demand.
The Riverdale LNG facility in Riverdale, Georgia—its largest—houses 31 million gallons (equivalent to 2.56 billion cubic feet) of natural gas across two tanks. It is connected to two interstate pipelines and the Atlanta Gas Light beltline system, capable of delivering up to 400,000 Mcf/day during peak usage.
Situated near Ball Ground, Georgia, the Cherokee LNG plant stores 25 million gallons (2.02 billion cubic feet) in a single tank on a 934-acre property with room for future expansion. It sources supply from three pipelines and can deliver up to 400,000 Mcf/day into Atlanta’s market.
The Macon, Georgia LNG plant holds 18.9 million gallons (1.5 billion cubic feet) and has a peak delivery capacity of 150,000 Mcf/day; however, pipeline limitations restrict output to approximately 70,000 Mcf/day.
Chattanooga Gas in Tennessee operates an LNG facility with storage capacity of 1.19 billion cubic feet and two pipeline connections that support deliveries up to 90,000 Mcf/day.
Via VNG, Southern Company Gas retains storage rights for 752,174 Mcf at Columbia Natural Gas Company’s Chesapeake LNG terminal. In 2002, VNG expanded utilization by installing an LNG vaporization unit adjacent to its propane facility, enabling injections of up to 14,400 Mcf/day into its system through LNG trucking from Chesapeake.
Retail operations
Southern Company Gas oversees four retail subsidiaries that provide natural gas and related services to millions of customers across multiple states in the United States.
Nicor Advanced Energy
Established in 2004 as an unregulated branch of Nicor Gas, Nicor Advanced Energy offers alternative natural gas plans targeting residential and small business customers within the service territories of Nicor Gas, Peoples Gas, and North Shore Gas. It holds certification from the Illinois Commerce Commission.
Nicor Solutions
Since its founding in 1991, Nicor Solutions has specialized in delivering energy billing services primarily for residential and small business clients.
Southstar Energy Services
SouthStar Energy Services supplies natural gas along with transportation and related services to more than 500,000 residential, commercial, and industrial customers across several states.
Elizabethtown Gas
Founded in 1855 and based in Union, New Jersey, Elizabethtown Gas served over 277,000 residential and commercial customers across multiple New Jersey counties. Acquired by AGL Resources in 2004, it managed pipeline infrastructure maintenance and leak repairs before being sold to South Jersey Industries in July 2018.
Elkton Gas
Founded in 1863, Elkton Gas supplied natural gas to nearly 6,000 customers on Maryland's eastern shore. Having become part of AGL Resources in 2004, the company also provided services such as heating system upkeep and assistance with fuel conversions. In July 2018, ownership transferred to South Jersey Industries.
Florida City Gas
Established in 1946, Florida City Gas catered to more than 104,000 customers throughout Miami-Dade and neighboring counties. It joined AGL Resources in 2004 and concentrated on pipeline upkeep and rapid leak response. The business was acquired by NextEra Energy in July 2018.
Pivotal Home Solutions
Operating across several states, Pivotal Home Solutions delivered tailored home repair and maintenance services, including natural gas appliance leasing in Florida and Massachusetts. This entity was sold to American Water Works Company, Inc. in June 2018.
Sequent Energy Management
Sequent Energy Management, a Houston-based subsidiary of Southern Company Gas founded in 2001, specialized in optimizing assets as well as marketing and trading energy commodities. It was divested to Williams Company in July 2021.
Revenue
AGL Resources experienced a net revenue increase of $800 million in 2013, climbing from $3.9 billion in 2012 to $4.7 billion. During the same period, earnings per share rose from $2.31 to $2.64.
Executive team
Jim Kerr holds the positions of chairman, president, and CEO at Southern Company Gas, while Grace Kolvereid serves as executive vice president and chief financial officer.
Corporate social responsibility
Southern Company Gas emphasizes its corporate social responsibility efforts on energy assistance programs, educational initiatives, environmental conservation, and community development. Its workforce of 6,094 employees actively participates in the "V-Force" volunteer program, supporting organizations such as March of Dimes, Habitat for Humanity, and Junior Achievement.
External links
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- Natural gas companies of the United States
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- Companies based in Atlanta
- Energy infrastructure in Georgia (U.S. state)
- American companies established in 1856
- Energy companies established in 1856
- Non-renewable resource companies established in 1856
- 1856 establishments in Georgia (U.S. state)
- Companies formerly listed on the New York Stock Exchange
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