PAA Natural Gas Storage, L.P. (NYSE: PNG) today announced its quarterly cash distribution of $0.3450 per unit ($1.38 per unit on an annualized basis) on all of its outstanding common and Series A subordinated units. The distribution will be payable on February 14, 2011, to holders of record of such units at the close of business on February 4, 2011. This distribution represents an increase of approximately 2.2% from the quarterly distribution of $0.3375 per unit ($1.35 per unit on an annualized basis) paid in November 2010.

PNG 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, which together 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.

PAA Natural Gas Storage, L.P.
Roy I. Lamoreaux, 713-646-4222 / 800-564-3036
Director, Investor Relations