SEATTLE, Sept. 13 /PRNewswire/ -- Westcoast Energy Inc. of Vancouver,
B.C., announced today that development of the Orca Natural Gas Pipeline
project will be placed on hold. Citing a lack of firm commitment from major
potential customers at this time, Westcoast stated that it could not proceed
further with the project's technical development phase.
    The proposed natural gas pipeline would have brought natural gas from
Canada, through Sumas Washington, south to South Whidbey Island and then west,
across Admiralty Inlet to serve east Jefferson County including Port Townsend
and surrounding communities south of Port Townsend. Many northwest Washington
communities that would benefit from the proposed project are served by Cascade
Natural Gas Corporation. Westcoast intends to reopen the project when they are
able to acquire the required market support.
    Cascade's Vice President, Districts, Will Odell said, "The project would
have provided greater flexibility, reliability, and market liquidity of
natural gas supplies for western Washington and east Jefferson County. While
this decision by Westcoast is disappointing, we still believe that additional
natural gas capacity will be required to meet future energy demands in
northwest Washington. We appreciated the positive support we received from
individuals, businesses, and local officials and we remain committed to
finding opportunities to serve these new communities. We will continue to keep
all interested parties informed of any significant changes."
    Cascade Natural Gas Corporation is a Seattle-based local distribution
company that provides natural gas service to 184,000 residential, commercial,
industrial and transportation customers in 90 communities in Washington and
Oregon. The Company's stock is listed on the New York Stock Exchange
(NYSE: CGC).

    CONTACT:  Will Odell, Vice President, Districts, 206-381-6719, or
wodell@cngc.com, or King Oberg, Vice President, Gas Supply, 206-381-6828, or
koberg@cngc.com, both of Cascade Natural Gas Corporation.

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