News Release
July 16, 2004

GULFSTREAM NATURAL GAS SYSTEM BEGINS MAINLINE CONSTRUCTION ON 110-MILE PIPELINE EXTENSION

TAMPA, Fla - Mainline pipeline construction gets underway this week on Gulfstream Natural Gas System's 110-mile mainline extension, lengthening the pipeline's reach from Central Florida to the state's east coast and doubling its service area. The expansion is scheduled to be complete in December 2004.

It was May 2002 when Gulfstream first placed its large diameter transmission pipeline into service, providing Florida with its first new natural gas transportation source in more than 40 years.

"We've come a long way in a very short amount of time, and are looking forward to continuing to expand our system to meet the needs of the market," says Brad Reese, Gulfstream vice president and general manager.

According to the Florida Public Service Commission, Florida's power generation needs are expected to more than double in the next decade.  Gulfstream can deliver in excess of 1 billion cubic feet of natural gas each day to fuel new and expanding natural gas markets across the state.

In total, the 110-mile mainline extension will require construction in five Florida counties: Polk, Hardee, Highlands, Okeechobee and Martin. Approximately 40 percent of the construction is colocated with existing road or utility corridors.

Gulfstream Natural Gas System, L.L.C. is a joint development between Williams (NYSE:WMB) and Duke Energy (NYSE:DUK).

More information about Gulfstream can be found at www.gulfstreamgas.com.

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