First New Natural Gas Pipeline System to Serve Florida in Over 40 Years is Under Construction

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Inc., Houston, Texas). Gulfstream Natural Gas System L.L.C. (Houston, Tx.) began construction on the 753 mile long Gulfstream pipeline in July of 2001. The pipeline originates near Pascagoula, Ms. and terminates in Palm Beach County, Fl. When completed the 753 mile natural gas transmission pipeline will consist of 431 miles of 36 diameter offshore pipeline and 306 miles of varying diameter (16 to 36) onshore pipeline mostly located in Florida. The massive pipe weighs eight tons per 40-foot section.

The support facilities for this $1.6 billion venture include a natural gas processing plant and a 120,000 horsepower compressor station near Coden, Ala. Approximately 200 miles of the offshore portion have been laid by three lay barges and the compressor station was 17 percent complete as of October 1, 2001. Similar progress has been made on the onshore portion in Florida.

Once completed in June 2002, Gulfstream will be the largest pipeline in the Gulf of Mexico and will initially transport 1.1 billion cubic feet per day of natural gas to supply Florida's growing gas-fired electrical generation needs. This new pipeline will help satisfy Florida's need for 25 percent more electrical generation by 2007 and the 179 percent increase in demand for natural gas over the next decade.

Gulfstream Natural Gas System L.L.C. is a joint energy development between Williams (NYSE:WMB) and Duke Energy (NYSE:DUK). Williams (Tulsa, Ok) is a $32 billion energy company delivering 16 percent of all natural gas consumed in the U.S. through a network of over 27,000 miles of pipelines. Duke Energy (Charlotte, NC) is a diverse energy company with revenues of over $22 billion in 2000.