Gill Ranch Storage, PG&E Developing New Gas Storage Facility

Wednesday, September 26, 2007

Gill Ranch Storage, LLC, a newly formed subsidiary of NW Natural, today jointly announced an agreement with Pacific Gas and Electric Company to develop a new underground natural gas storage facility at Gill Ranch near Fresno. The Gill Ranch natural gas storage project located about 25 miles west of Fresno will provide approximately 20 billion cubic feet (Bcf) of underground gas storage once the initial phase is completed, expected in 2010. PG&E’s California Gas Transmission will integrate its portion of the project as part of its complete line of gas storage services.

The proposed storage field will utilize a depleted, sandstone natural gas reservoir located at a depth of over a mile below the surface and has the potential to support additional capacity development in the future, if market conditions are favorable. CGT believes that the project is a cost effective way to provide its customers more options and flexibility in the competitive California gas storage market.

For additional information please contact CGT’s Transportation and Storage Sales Consultants:

Allen DeBrum          415.973.0141

Shannon Varjassy    415.973.6597