Plains All American Announcing Has Made Proposal to Buy Publicly-Held Units of PAA Natural Gas Storage, Offering 0.435 Units/PNG Unit

Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it hassubmitted a proposal to the independent directors of the board of directors ofthe general partner of PAA Natural Gas Storage, L.P. (NYSE: PNG) to acquireall of PNG's outstanding publicly-held common units through a unit-for-unitexchange. PAA is proposing consideration of 0.435 common units of PAA for eachissued and outstanding publicly-held PNG common unit in a transaction thatwould be structured as a merger of PNG with a wholly-owned subsidiary of PAA.The proposed consideration represents a value per PNG common unit of $22.74based on the trailing 10-day average closing price of PAA's common unitsthrough August 26, 2013.“While PAA shares PNG's positive views about the intermediate to long termoutlook for natural gas storage, it is difficult to predict the timing andextent of a recovery in natural gas storage market conditions. Accordingly, itis clear that the next several years will be challenging for PNG on astand-alone basis,” said Greg L. Armstrong, Chairman and CEO of PAA. “Webelieve that the proposal provides an attractive opportunity for PNG's commonunitholders to realize a value that reflects an appropriate balance betweenthe intermediate to long term value of PNG's storage business and theuncertainty associated with a near-term challenging environment.”The proposed transaction is subject to the negotiation and execution of adefinitive agreement and approval of such definitive agreement and thetransactions contemplated thereunder by PAA's board of directors, a conflictscommittee to be established by the board of directors of PNG and theunitholders of PNG. There can be no assurance that any such approvals will beforthcoming, that a definitive agreement will be executed or that anytransaction will be consummated.