News Release
June 29, 2001

Gulfstream Ready To Begin Laying Pipe Offshore

HOUSTON – Gulfstream Natural Gas System, L.L.C., will reach another major milestone tomorrow when it begins laying 36-inch diameter steel pipe offshore near the coast of Alabama. The effort is the beginning of a four-month process that will result in 433 miles of pipe laid in the Gulf of Mexico connecting Alabama to Florida.

"We are moving full speed ahead. We will be laying offshore pipe with one of the most sophisticated semi-submersible pipelay barges in the world, laying 3-4 miles of pipe per day from July 1 through the end of October," said Nancy Schultz, Gulfstream senior vice president and general manager of technical functions.

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.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at www.williams.com.

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