Southern Natural Gas Co history

Georgia Power sold AGL in 1929.

The name changed with reorganization and reincorporation in 1935.

These two cities were then the largest in the South, and, despite the Depression, SNG was paying dividends by 1936.

Built in 1948 by El Paso Natural Gas Co., the 1,200-mile pipeline was the largest of its kind at the time, capable of delivering 175 million cubic feet of natural gas to Southern California each day.

In 1956 SNG purchased the Offshore Company, a pioneer in offshore drilling, which later became one of Sonat's greatest strengths.

In 1963 Offshore began designing and implementing rigs specifically for use in the North Sea.

Christopher T. Chenery, the company's first chief executive, served until 1965.

Under John S. Shaw, who became chairman in 1967, the company diversified from the interstate pipeline base provided by SNG and its various interests, and became a giant growth company.

Interstate, a petroleum products carrier working along the east and gulf coasts, was purchased by Sonat in 1980 for $109 million.

In 1981 company revenues were $2.4 billion.

The offshore drilling division, undergoing difficulties because of the soft market, continued to add to its fleet, which included 14 land units and 24 marine rigs in 1984.

In 1985 Sonat looked more to gas and oil acreage to increase production revenues.

Broadening its natural gas interests in 1987, the company formed Sonat Gas Supply, Inc., and Sonat Marketing Company.

Offshore rig utilization and day rates increased, with operating income showing a profit in 1990 after two years of loss.

In 1998 – as part of the rapid consolidation in the electric and natural gas industries to lower costs and achieve economies of scale sparked by deregulation – Pacific Enterprises merged with Enova Corporation, the parent company of San Diego Gas & Co.