TULSA, Okla., Jan. 22 /PRNewswire-FirstCall/ -- A unit of Williams (NYSE: WMB) announced today it is holding a non-binding open season from Jan. 22 to Feb. 26 for an expansion project designed to provide increased capacity on its Transco natural gas pipeline system to serve markets in the southeastern United States.

Williams' proposed Mobile Bay South II expansion project will offer shippers the opportunity to subscribe to year-round firm transportation service on Transco's Mobile Bay Lateral from Station 85 in Choctaw County, Ala., as far south as an existing interconnection with Gulfstream Natural Gas System in Mobile County, Ala.

"This project builds on the success of our first Mobile Bay South expansion project. It will provide shippers access to supply at Station 85, as well as access to third-party storage being connected to the Mobile Bay Lateral," said Phil Wright, president of Williams' natural gas pipeline business.

The Mobile Bay South II expansion project is expected to provide up to 550,000 dekatherms per day of new capacity; it is anticipated to be available as early as May 2011, subject to Federal Energy Regulatory Commission approval.

"Mobile Bay South II is Williams' cost-effective solution to connect growing supply at Station 85 to growing demand from local distribution companies and power generators in the Southeast," Wright said. "Requiring only compression, our project is designed to meet this demand with a relatively modest investment. In fact, minimal capital will be needed until 2010."

The final project size, scope of facilities and cost will be determined by the results of the open season.

For customer inquiries regarding the Mobile Bay South II expansion project, please contact Toi Anderson at 713-215-4540.

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:  Carin Andre
               Williams (media relations)
               (713) 215-2817

               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.

SOURCE Williams