- Pipeline to Create Strategic Outlet for Oil-Sands-Produced NGLs TULSA, Okla., April 30 /PRNewswire-FirstCall/ -- Williams (NYSE:WMB) today announced plans to build a pipeline in Alberta, Canada, to transport natural gas liquids and olefins from its extraction plant in Fort McMurray to its Redwater processing facility. Williams currently processes off-gas from Suncor Energy's (NYSE and TSX: SU) oil-sands facility in the Fort McMurray area, extracts the natural gas liquids and olefins and transports them via the Suncor Oil Sands Pipe Line. The new 12-inch proposed pipeline will provide additional capacity for Suncor liquids, as well as natural gas liquids from other oil-sands producers' off-gas. The proposed pipeline project is expected to cost $283 million USD, using cash previously received from Canadian and other international projects. Construction on the 261-mile pipeline is expected to begin in 2010, with an anticipated in-service date of April 2012. The pipeline will have an initial capacity of 43,000 barrels per day of off-gas liquids, with the future capability to transport up to 125,000 barrels per day by installing additional pump stations. In support of the new pipeline, Suncor is dedicating approximately 106 million cubic feet per day of off-gas (which equals about 15,000 barrels per day of production) with the potential for additional volumes for processing at the Williams Fort McMurray and Redwater facilities through 2032. "This new pipeline fits perfectly with Williams' midstream strategy of providing reliable, large-scale infrastructure in growing basins and positions us extremely well for future business from other producers in the area," said Alan Armstrong, president of Williams' midstream business. "In addition, the pipeline will support the future removal of ethane from the oil-sands off-gas, which will further decrease greenhouse gas and sulfur dioxide emissions and provides a critical feedstock for Alberta chemical companies." Companies in the Fort McMurray area that upgrade bitumen from the oil-sands to synthetic crude currently produce off-gas containing approximately 90,000 barrels per day of natural gas liquids and olefins from oil-sands production. Most of these liquids are now burned as fuel, with higher associated greenhouse gas and sulfur dioxide emissions than would result from burning an equivalent amount of natural gas. With the expected addition of off-gas processing facilities similar to Williams', more of these liquids will be recovered and made available for transportation on the proposed pipeline. Based on announced upgrader expansion projects in the Fort McMurray area, these potential off-gas liquid volumes are expected to increase to 175,000 barrels per day within 10 years. The pipeline project requires approval from the Energy Resources Conservation Board and other Canadian regulatory agencies. In addition, Williams will continue to conduct on going public consultation with area communities and other stakeholders. As the only processor of oil-sands off-gas, Williams is extracting higher-value products from oil-sands-produced off-gas while reducing greenhouse gas and sulfur dioxide emissions. 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: Jeff Pounds Williams (media relations) (918) 573-3332 Richard George Williams (investor relations) (918) 573-3679 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. DATASOURCE: Williams CONTACT: Media, Jeff Pounds, +1-918-573-3332, or Investors, Richard George, +1-918-573-3679, both of Williams Web Site: http://www.williams.com/

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