TULSA, Okla. — A unit of Williams (NYSE:WMB) announced today an agreement to discontinue development of the Georgia Strait Crossing pipeline project.
Williams Gas Pipeline and British Columbia Hydro and Power Authority – co-sponsors of the project – have mutually agreed to end plans to construct a $209 million natural gas pipeline across the Strait of Georgia to serve electric generation facilities on Vancouver Island, B.C.
Project development costs, estimated at approximately $34 million, were funded by BC Hydro. Under the terms of the agreement with Williams, BC Hydro assumes full responsibility for all project costs.
The decision on whether the project would proceed has been on hold since September 2003 pending a regulatory review of energy needs on Vancouver Island.
As a result of the Canadian regulatory process, BC Hydro has decided to pursue other alternatives to meet short-term energy needs and will move forward with plans to replace aging electric transmission cables.
“In light of BC Hydro’s decision to pursue other alternatives, we agree that it is time to terminate the project,” said Allison Bridges, vice president of commercial operations for Williams Northwest Pipeline. “When it was originally proposed, this was a viable alternative for supplying Vancouver Island’s long term energy needs, and we believe it also held long term, cost-effective options for future industrial development in western Washington.”
The 84-mile pipeline project received a FERC certificate in September 2002 and similar approval from the National Energy Board of Canada in December 2003.
About Williams (NYSE:WMB)
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 www.williams.com.
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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.
Contact Information:
| Beverly Chipman | Williams Media Relations | 801-584-7048 | |
| Courtney Baugher | Williams Investor Relations | 918-573-5768 |
