Piedmont Natural Gas Announces Investment in Constitution Pipeline Project

  Piedmont Natural Gas Announces Investment in Constitution Pipeline Project

Piedmont to join Williams Partners L.P. and Cabot Oil and Gas Corporation as
equity participant in natural gas pipeline project to serve major northeastern
markets by 2015

PR Newswire

CHARLOTTE, N.C., Nov. 13, 2012

CHARLOTTE, N.C., Nov. 13, 2012 /PRNewswire/ -- Piedmont Natural Gas (NYSE:
PNY) today announced its equity investment in Constitution Pipeline Company,
LLC, a natural gas pipeline project slated to transport natural gas supplies
from the prolific Marcellus supply region in northern Pennsylvania to major
northeastern markets.The project is scheduled to be in service by March 2015.
Piedmont Natural Gas, through its wholly-owned subsidiary Piedmont
Constitution Pipeline Company, LLC, joins Williams Partners L.P. (NYSE: WPZ)
and Cabot Oil and Gas Corporation (NYSE: COG) as a 24 percent equity
participant in the joint venture, and will invest an estimated $180 million in
the new project.

Thomas E. Skains, Piedmont's Chairman, President, and CEO commented on the
Company's involvement, "Piedmont's equity participation in the Constitution
Pipeline project aligns very well with our strategic focus on expanding our
investments in complementary energy-related businesses as a means of enhancing
shareholder value." Skains continued, "We are excited about making an
investment in strategic pipeline infrastructure in the Marcellus supply basin
that will transport clean, low cost natural gas supplies to premium East Coast
markets and provide substantial benefits for both natural gas producers and
consumers. We are equally excited to be joining such strong joint venture
partners as Williams Partners and Cabot Oil and Gas, as both are outstanding
companies and widely respected in our industry."

An affiliate of Williams Partners will construct, operate, and maintain the
new 30-inch, 121-mile long transmission pipeline that is being designed with
sufficient capacity to transport 650,000 dekatherms of natural gas per day (a
quantity of natural gas that can serve approximately 3 million homes) from
established Marcellus production areas in Susquehanna County of northern
Pennsylvania. The pipeline will connect with the Iroquois Gas Transmission
and Tennessee Gas Pipeline systems in Schoharie County, New York and is
already fully contracted with long-term commitments from established natural
gas producers currently operating in Pennsylvania; Piedmont will not be a
customer of Constitution Pipeline. Williams Partners will maintain a 51
percent ownership share, Cabot Oil and Gas a 25 percent share, and Piedmont
Natural Gas, through its wholly owned subsidiary, a 24 percent share in the
pipeline venture.

"Williams Partners enjoys a long-term, mutually beneficial relationship with
Piedmont as a customer on our Transco pipeline system and as a joint venture
partner in existing pipeline and storage infrastructure projects in North
Carolina. We are delighted to expand that relationship with Piedmont as a new
partner in the Constitution Pipeline," said Alan Armstrong, chief executive
officer of Williams Partners. "Constitution is a key component of the
Susquehanna Supply Hub that Williams Partners is expanding to connect
Marcellus Shale producers like Cabot and Southwestern Energy with the
highest-value markets.

"The Constitution Pipeline is a great example of the kind of leadership and
investment –from energy-infrastructure providers like Williams Partners,
utilities like Piedmont and producers like Cabot – that we believe is key to
building the foundation our nation needs to realize the full benefits of the
new abundance of long-lived, clean-burning natural gas supplies in
Pennsylvania's Marcellus Shale and elsewhere in North America."

The Constitution Pipeline project was first announced in February 2012 by
Williams Partners and Cabot Oil and Gas. Construction of the new pipeline is
expected to begin in April 2014 with an in-service date of March 2015.
Constitution Pipeline is currently in the pre-filing process with the Federal
Energy Regulatory Commission (FERC), the federal agency charged with the
regulation of interstate pipelines. Constitution Pipeline plans to file a
formal certificate application with the FERC in the spring of 2013. More
information about the Constitution Pipeline project can be found at
www.constitutionpipeline.com.

Forward-Looking Statement

This press release contains forward-looking statements. These statements are
based on management's current expectations and information currently available
and are believed to be reasonable and are made in good faith. However, the
forward-looking statements are subject to future events, risks, uncertainties
and other factors that could cause actual results to differ materially from
those projected in the statements. Factors that may make the actual results
differ from anticipated results include, but are not limited to, weather
conditions, rate of customer growth, the cost and availability of natural gas,
competition from other energy providers, new legislation and regulations and
application of existing laws and regulations, economic and capital market
conditions, the cost and availability of labor and materials and other
uncertainties, all of which are difficult to predict and some of which are
beyond our control. For these reasons, you should not place undue reliance on
these forward-looking statements when making investment decisions. The words
"expect," "believe," "project," "anticipate," "intend," "should," "could,"
"assume," "can," "estimate," "forecast," "future," "indicate," "outlook,"
"plan," "predict," "seek," "target," "would," and variations of such words and
similar expressions are intended to identify forward-looking statements.
Forward-looking statements are only as of the date they are made and we do not
undertake any obligation to update publicly any forward-looking statement,
either as a result of new information, future events or otherwise. More
information about the risks and uncertainties relating to these
forward-looking statements may be found in Piedmont's latest Forms 10-K and
10-Q, which are available on the SEC's website at http://www.sec.gov.

About Piedmont Natural Gas

Piedmont Natural Gas is an energy services company primarily engaged in the
distribution of natural gas to more than one million residential, commercial
and industrial utility customers in North Carolina, South Carolina and
Tennessee, including 51,600 customers served by municipalities who are
wholesale customers. Our subsidiaries are invested in joint venture,
energy-related businesses, including unregulated retail natural gas marketing,
interstate natural gas storage and intrastate natural gas transportation. More
information about Piedmont Natural Gas is available on the Internet at
http://www.piedmontng.com/.

About Williams Partners L.P.

Williams Partners L.P. is a leading diversified master limited partnership
focused on natural gas transportation; gathering, treating, and processing;
storage; natural gas liquid (NGL) fractionation; and oil transportation. The
partnership owns interests in three major interstate natural gas pipelines
that, combined, deliver 14 percent of the natural gas consumed in the United
States. The partnership's gathering and processing assets include large-scale
operations in the U.S. Rocky Mountains and both onshore and offshore along the
Gulf of Mexico. Williams (NYSE: WMB) owns approximately 70 percent of Williams
Partners, including the general-partner interest. More information is
available at www.williamslp.com, where the partnership routinely posts
important information.

About Cabot Oil and Gas

Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading
independent natural gas producer, with its entire resource base located in the
continental United States. For additional information, visit the Company's
Internet homepage at www.cabotog.com.

SOURCE Piedmont Natural Gas

Website: http://www.piedmontng.com
Contact: David L. Trusty, Piedmont Natural Gas, +1-704-731-4391,
david.trusty@piedmontng.com
 
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