Williams Places MarketLink Phase I Expansion Project into Service

Business Wire, Dec 19, 2001

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Dec. 19, 2001

Williams (NYSE:WMB) announced today the completion of the first phase of the Transco pipeline system's MarketLink expansion project, which provides much needed incremental natural gas transportation capacity into the Northeastern United States. This project represents the first interstate pipeline expansion completed to serve the New York metropolitan area since 1992.

"Williams Gas Pipeline - Transco has provided reliable, economic gas transportation services to the Northeast for over 50 years and is committed to meeting the growing energy requirements in the region," said Gary Lauderdale, senior vice president and general manager, Williams' Transco pipeline. "This area, which includes Pennsylvania, New Jersey and New York, continues to experience a need for additional natural gas to serve residential, commercial and power generation facilities. MarketLink will help meet this need."

MarketLink, which was approved by the Federal Energy Regulatory Commission on April 26, 2000, will be constructed in two phases. Phase I was placed into service on Dec. 19 and will deliver an incremental 166,000 Dth/d of clean-burning natural gas. Phase II of the project, which will be placed in service in November 2002, will deliver another 130,000 Dth/d to the region.

"Phase 1 of MarketLink will provide much needed capacity to the region in time for the winter heating season," said Mario DiCocco, Williams' Transco pipeline director of operations for the Princeton division, which covers New Jersey, New York and Pennsylvania. "We will begin construction of Phase II next spring."

More than a dozen new gas-fueled power plants are currently in the permitting process in New Jersey alone. This expanded supply will fuel new, environmentally efficient power plants that are needed to meet the region's growing electricity needs and to help meet the Clean Air Act standards.

About Williams (NYSE:WMB)

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

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.