Williams Receives FERC Approval to Provide Additional Natural Gas Service to Northeast

TULSA, Okla., Aug. 18 /PRNewswire-FirstCall/ — Williams announced today that that the Federal Energy Regulatory Commission (FERC) has approved a proposal to expand Williams’ Transco natural gas pipeline to serve markets in the northeastern United States.

The Sentinel expansion project is designed to increase Transco’s firm transportation capacity by 142,000 dekatherms per day. Phase 1 of the expansion will provide 40,000 dekatherms per day as early as Nov. 1, 2008, while Phase 2 will provide 102,000 dekatherms per day by Nov. 1, 2009.

“We appreciate the efforts of the FERC and other state and federal agencies in reviewing this application,” said Phil Wright, president of Williams’ natural gas pipeline business. “We are committed to continuing to work with the FERC, state and county permitting agencies and all of the stakeholders involved, to construct this project in a safe, responsible manner so that we can provide much-needed incremental natural gas capacity to this part of the country.”

The proposal requires adding or replacing approximately 18 miles of pipe at various locations in Pennsylvania and New Jersey, in addition to compressor facility modifications at Transco Station 195 in Delta, Pa.

Additional information about the project can be found online at http://www.williams.com/sentinel.

The Transco pipeline is a 10,500-mile pipeline system which transports natural gas to markets throughout the northeastern and southeastern United States. This expansion increases the total system capacity of the Transco pipeline to approximately 8.3 billion cubic feet per day.

About Williams

Williams, through its subsidiaries, primarily finds, produces, gathers, processes and transports natural gas. The company also manages a wholesale power business. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, southern California and Eastern Seaboard. More information is available at http://www.williams.com. Click here to join our email alert list: http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0.

    Contact:          Chris Stockton                      Williams (media relations)                      (713) 215-2010                       Sharna Reingold                      Williams (investor relations)                      (918) 573-2078   

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.

Williams

CONTACT: media relations, Chris Stockton, +1-713-215-2010, or investorrelations, Sharna Reingold, +1-918-573-2078, both of Williams

Web site: http://www.williams.com/