The developers of the proposed Pacific Connector Gas Pipeline launched an open season last week, lasting until March 1, for capacity on the pipeline, which would transport natural gas from the proposed Jordan Cove LNG terminal in Coos Bay , Ore. Friday's edition of Platts LNG Daily has further details. [Subscription required]

February 01, 2007

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Pacific Connector Gas Pipeline, LP Solicits Commitments for Pacific Connector Project

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., today began an open season for natural gas pipeline capacity on its proposed Pacific Connector Gas Pipeline.

The Pacific Connector 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 and will be subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC). The proposed pipeline includes approximately 231 miles of 36-inch diameter pipeline between Coos Bay and Malin, Ore., and approximately 20,000 horsepower of compression to provide peak day deliveries of 1 billion cubic feet of gas per day. Proposed interconnects with other transmission systems include Williams’ Northwest Pipeline near Myrtle Creek, Ore., Pacific Gas & Electric Company’s backbone system, Tuscarora’s Gas Transmission system, and Gas Transmission Northwest’s system, all located near Malin, Ore.

Pacific Connector already has received expressions of interest for the majority of the capacity on the proposed pipeline. During the open season, Pacific Connector will accept binding agreements from interested parties for firm transportation capacity on the proposed pipeline from the LNG Terminal in Coos Bay to any delivery points along the pipeline route to Malin, Ore. The project is on course for an early second quarter 2007 certificate application date supporting a fourth quarter 2011 in-service date.

“We are pleased with the level of support from the market and the progress that has been made in the preliminary stages of the FERC review and permitting process,” said Phil Wright, president of Williams’ gas pipeline business.

“The proposed pipeline will provide access to new sources of supply for the Western region, where demand for natural gas continues to grow,” said Dan Thomas, PG&E strategic capital director, business development. “Once constructed, not only will the system offer greater reliability and flexibility for customers, but it will also enhance the competitive price of natural gas for the entire region.”

“We continue to believe the Pacific Connector and Jordan Cove LNG Terminal projects will become vital components of the total energy supply needs of the Western United States” said Stephen H. White, president and chief executive officer of Fort Chicago.

For additional information, contact Hank Henrie at 801-584-6625 or Larry Larsen at 801-584-6645. Shippers must execute and return a binding precedent agreement by 5 p.m. (MST) on March 1, 2007.

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. (NYSE:PCG)

PG&E Strategic Capital, Inc. is a wholly owned subsidiary of PG&E Corporation, 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 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.

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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.

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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