News Release
July 23, 2001

GULFSTREAM BEGINS LAYING PIPE IN TAMPA BAY

HOUSTON – The first sections of offshore Florida pipe were laid in Tampa Bay today as offshore construction activities continue on the 753-mile Gulfstream Natural Gas System. The work is part of the shallow water construction effort that includes burying approximately 27 miles of concrete-coated steel pipe between Port Manatee and an area 20 miles west of Sunshine Skyway Bridge. The shallow water work is scheduled to be completed by the end of August.

The pipe lay effort will utilize the DLB-801, a 350-foot barge with a 230-person crew capable of laying approximately 1 mile of pipe per day.

Another pipe barge is currently laying pipe in deep water off the coast of Alabama, working its way toward Florida. To date, it has laid approximately 25 of the 419 miles of offshore pipe.

Once complete, the $1.6 billion Gulfstream system will be the largest pipeline in the Gulf of Mexico, with capacity to transport approximately 1.1 billion cubic feet of natural gas per day. It is also the first new natural gas transportation system to serve Florida in more than 40 years.

Gulfstream Natural Gas System, L.L.C. is a joint interstate natural gas pipeline development of Williams (NYSE:WMB) and Duke Energy (NYSE:DUK) approved by the Federal Energy Regulatory Commission Feb. 22, 2001. Construction of the 753-mile pipeline project began June 1, 2001. The pipeline will extend from Mississippi and Alabama across the Gulf of Mexico to Florida. It is designed primarily to serve Florida utilities and power-generation facilities that will use high-efficiency natural gas turbines to meet the increasing demand for electric energy.

More information about the Gulfstream Natural Gas System is available by visiting the project web site at www.gulfstreamgas.com.

Contact: Chris Stockton
Phone: 713/215-2010
24 Hour Phone: n/a
Email: Christopher.L.Stockton@Williams.com