Williams to Significantly Expand Echo Springs Gas Processing Plant

TULSA, Okla., May 21 /PRNewswire-FirstCall/ -- Williams announced today it plans to significantly increase the processing and natural gas liquid (NGL) production capacities at the Echo Springs natural gas processing plant in Carbon County, Wyoming.

The expansion will add approximately 350 million cubic feet equivalent (MMcfe) per day of processing capacity and 30,000 barrels per day of NGL production capacity, roughly doubling the plant's volumes in both cases. Williams expects to bring the additional capacity online during late 2010, subject to all applicable permitting. Once the expansion is complete, the plant's processing capacity will be 740 MMcfe per day and its NGL production capacity will be 60,000 barrels per day.

"The three existing processing trains at Echo Springs are already running at their combined capacity and the producers in the Wamsutter area are expecting significant volume growth in the future," said Alan Armstrong, president of Williams' midstream business. "This expansion will provide a significant boost to our large-scale processing capacity in Wyoming, enabling us to continue delivering reliable services to the producers in the area."

Williams' gas processing plant in Opal, Wyo., currently has a processing capacity of 1.45 billion cubic feet equivalent (Bcfe) per day and produces 67,000 barrels of NGLs per day. Once the Echo Springs expansion is complete, the two plants in Wyoming will be capable of processing 2.19 Bcfe per day and producing 127,000 barrels per day of NGLs.

For the Echo Springs expansion, Williams plans to spend up to $233 million to construct a fourth cryogenic processing train and associated facilities at the plant. Construction is expected to begin during the second half of 2009. Williams' board of directors recently approved the project, which was not included in prior 2009 capital expenditure guidance.

The Echo Springs plant is part of the Wamsutter system, which also includes an approximate 1,700-mile natural gas gathering system. The Wamsutter system gathers approximately 69 percent of the natural gas produced in the Washakie Basin and connects with the Colorado Interstate Gas, Wyoming Interstate Gas and Southern Star Central Gas Pipeline systems that transport natural gas to end markets from the basin.

In 2007, Williams sold 100 percent of the Class A membership interests and 50 percent of the initial Class C units in Wamsutter LLC, the limited liability company that owns the Wamsutter system, to Williams Partners L.P. for $750 million.

Under the terms of the agreement, Williams retained the right to make material expansion investments in Wamsutter in exchange for additional Class C units, which would entitle it to receive an increased portion of the growth cash flows. Williams will receive additional Class C units in Wamsutter LLC for the Echo Springs expansion project once it is placed into service.

About Williams

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.