Kern River Gas Transmission Company Underway with Natural Gas Pipeline Expansion

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Kern River Gas Transmission Company (KRGT) is currently constructing its 2002 natural gas pipeline expansion project. Construction began in the third quarter of 2001 and is slated for completion in May 2002. The project entails the construction of the two new compressor stations Veyo and Elberta, both in Utah and the replacement of the Dagget station in California, which was a temporary compression facility. KRGT restaged and upgraded three further compressor stations along its pipeline route, which extends from Wyoming to Southern California.

The compression expansion will increase total transmission capacity by 18 percent or 124 million cubic feet per day at an over all capital cost of $81 million. The majority of KRGT's 2002 expansion project will be used to fuel gas-fired power generation in the Southern California area and will lay the groundwork for the 2003 expansion project, which is likely to exceed $1 billion.

KRGT is a wholly owned subsidiary of Williams Companies, Incorporated (NYSE:WMB) (Tulsa, Ok.). Williams Companies as of the second quarter of 2001 had assets of over $36 billion, 12,500 employees and supplied over 16 percent of the natural gas consumed in the US during 2000.