Williams Receives FERC Approval to Provide Additional Natural Gas Service to Southeast by 2010

TULSA, Okla., May 14 /PRNewswire-FirstCall/ — Williams (NYSE: WMB) 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 southeastern United States.

New service from the Mobile Bay South project would be available in the second quarter of 2010. The project is designed to create 253,500 dekatherms of southbound, year-round firm transportation capacity on the Mobile Bay Lateral from Transco’s mainline at Station 85 near Butler, Ala., to its interconnect with Gulfstream Natural Gas System in Coden, Ala.

“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.

“The Mobile Bay South project will enable us to provide firm southbound transportation service for growing domestic supplies from new pipeline interconnects at Station 85 to markets in Southwest Alabama and Florida, as well as third-party storage facilities, while maintaining the full capability of the lateral to supply our traditional customers through northbound service to Station 85.”

The Mobile Bay South project will require construction of a new 9,470 horsepower compressor facility at Station 85 in Choctaw County, Ala. Williams estimates that the project facilities will cost approximately $37 million.

About Williams (NYSE: WMB)

Williams, through its subsidiaries, finds, produces, gathers, processes and transports natural gas. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard. More information is available at http://www.williams.com. Go to http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our e-mail list.

    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.

SOURCE Williams