TULSA, Okla. — Pacific Connector Gas Pipeline, LP, a limited partnership between Williams Pacific Connector Gas Pipeline, LLC, PG&E Strategic Capital, Inc. and Fort Chicago LNG II U.S. L.P., has completed a successful open season for natural gas pipeline capacity on its proposed Pacific Connector Gas Pipeline (Pacific Connector). The open season began Feb.1, 2007, and closed March 5, 2007.
Seven shippers have executed precedent agreements for 1.49 billion cubic feet of gas per day (Bcf/d) of firm transportation capacity, which exceeds the initial design capacity of 1 Bcf/d. As shippers finalize their related gas supply and market commitments, Pacific Connector will determine whether firm transportation agreements will exceed the initial design capacity and allocate the contract demands, as necessary, to match the proposed pipeline’s capacity of 1 Bcf/d. Additionally, the capacity of Pacific Connector can be easily expanded in the future to deliver up to 1.5 Bcf/d.
“The interest we received from shippers clearly indicates they recognize the strategic value of the proposed project in providing access to global LNG supplies to meet future energy supply needs of the Western United States,” said Phil Wright, president of Williams’ gas pipeline business.
The Pacific Connector pipeline is an interstate natural gas transmission system designed to transport natural gas from the proposed Jordan Cove LNG import terminal to be located at Coos Bay, Ore., to various delivery points in southern Oregon. The proposed pipeline includes approximately 230 miles of 36-inch diameter pipeline between Coos Bay and Malin, with interconnects to Williams’ Northwest Pipeline near Myrtle Creek, Avista Corporation’s pipeline system near Shady Cove, as well as Pacific Gas and Electric Company’s gas transmission system, Tuscarora Gas Transmission, and Gas Transmission Northwest, all located near Malin.
The proposed Pacific Connector project is subject to Federal Energy Regulatory Commission (FERC) jurisdiction, and an application for the project will be filed with the FERC later this spring with a proposed in-service date in the fall of 2011 for both the Jordan Cove LNG import terminal and Pacific Connector pipeline.
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 the Eastern Seaboard. www.williams.com.
About PG&E Strategic Capital, Inc.
PG&E Strategic Capital, Inc. is a wholly owned subsidiary of PG&E Corporation (NYSE:PCG), an energy-based holding company. PG&E Corporation is also the parent company of Pacific Gas and Electric Company, one of the largest investor-owned electric utilities in the country. Pacific Gas and Electric Company serves approximately 15 million customers throughout northern and central California.
www.pgecorp.com.
About Fort Chicago Energy Partners L.P.
Based in Calgary, Alberta, Fort Chicago presently owns a 50 percent interest in the Alliance Pipeline, an approximate 42.7 percent interest in Aux Sable Liquid Products L.P. and Alliance Canada Marketing and a 100 percent interest in the Alberta Ethane Gathering System ("AEGS"). The Alliance Pipeline is a 3,000 kilometer mainline natural gas pipeline, which extends from northeastern British Columbia to delivery points near Chicago, Illinois. Aux Sable operates natural gas liquids extraction, fractionation and delivery facilities near Chicago. AEGS is a 1,324 kilometer ethane pipeline system, which delivers ethane feedstock to Alberta's petro-chemical industry. www.fortchicago.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.
PG&E Strategic Capital Inc. is not the same company as Pacific Gas and Electric Company, the utility. PG&E Strategic Capital, Inc. is not regulated by the California Public Utilities Commission, and you do not have to buy PG&E Strategic Capital, Inc. products in order to continue to receive quality regulated services from the utility.
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Contact Information:
| Richard George | Williams Investor Relations | 918-573-3679 | |
| Michele Swaner | Media Relations | (801) 584-7048 |
