News Release
May 31, 2001

Gulfstream Natural Gas System Breaks Ground

HOUSTON – Gulfstream Natural Gas System, L.L.C. today celebrated the initial construction activities of the 753-mile pipeline at a ground breaking ceremony at Port Manatee, Fla. The event commemorated the start of an intensive 12-month construction process required to provide a new supply of natural gas transportation capacity to Florida by June 2002.

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 from Mississippi and Alabama to Florida. It is also the first new natural gas transportation system to serve Florida in more than 40 years.

"During the past two years, the Gulfstream team has invested hundreds of thousands of hours planning and preparing to construct this pipeline," said Nancy Schultz, Gulfstream senior vice president and general manager, technical functions. "This is the largest pipeline project underway in North America. This vital transportation system, so many years in the making, is on its way to becoming a reality."

"This is an important day in helping ensure Florida’s energy future for years to come," said Guy Buckley, Gulfstream senior vice president and general manager, business functions. "By adding this new pipeline capacity from proven natural gas reserves in the Gulf of Mexico, Gulfstream will provide enough fuel to create electricity for an additional 4.5 million Florida homes. We look forward to helping Florida meet its energy challenges in an environmentally-friendly and cost effective manner for many years to come."

Preparation for pipe laying has been ongoing for the past two months and will continue through June. Offshore pipe laying is scheduled to begin in early July. The construction vessels used to place the offshore pipe can lay up to four miles of pipe each day.

Onshore pipe laying is on schedule to begin in mid-July in Polk County, Fla. In preparation for construction, more than 93 miles of pipe weighing in excess of 188,000 tons has been shipped from pipe mills in Florida, France and Germany to pipeyards in Alabama and Florida.

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. The 753-mile pipeline project 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 http://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 http://www.williams.com.

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