Williams Receives FERC Approval on Transco Project

TULSA, Okla. — Williams (NYSE:WMB) announced today that it received authorization from the Federal Energy Regulatory Commission to construct an expansion on its Transco natural gas pipeline in New Jersey.

The expansion will provide an additional 105,000 dekatherms per day of firm natural gas transportation service to South Jersey Gas, which provides natural gas service to more than 311,000 customers in southern New Jersey.

“We are pleased with the FERC's approval of this project and we appreciate the confidence South Jersey Gas has placed in us. They do an excellent job of serving their customers. We look forward to increasing our deliveries to South Jersey Gas, providing them with reliable, economic natural gas transportation services for many years to come,” said Phil Wright, senior vice president of Williams’ natural gas pipeline business.

The expansion will require adding approximately 3.5 miles of new 36-inch pipeline along Transco’s existing pipeline system in Burlington County, N.J. Construction on the $13 million project is scheduled to begin in the summer of 2005 and is expected to be complete by November 2005.

Williams’ Transco pipeline has a transportation capacity of approximately 8.1 million dekatherms of natural gas per day.

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.

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