FOR IMMEDIATE RELEASE
For further information, call: Susan Castiglione, Senior Manager, Corporate & Public Affairs, (678) 762-2211

Colonial Pipeline Announces Mainline Capacity Expansion Plans

February 1, 2000

Colonial Pipeline Company today announced plans to increase its mainline shipping capacity by 144,000 barrels per day. This represents over a six percent increase in nominal system capacity. The increase in shipping capacity will result from an expansion of one of its two main lines, which run from Houston, Texas to Greensboro, North Carolina.

The project will modify and increase the shipping capacity of Colonial's Line 2, a 36-inch distillate line that transports kerosene, diesel fuel, home heating oil, aviation fuel and military fuels from its origin in Houston to Greensboro. This capacity increase represents a significant benefit to Colonial's customers, particularly during winter months.

"I am pleased to announce to our shippers and their customers Colonial's increase in transportation capacity," Colonial President Dave Lemmon stated, "This expansion will move us forward to our vision of increased service and continuing excellence for the future."

The project will involve the reactivation of mailine pumping facilities, additional horsepower at selected locations, impeller upgrades, and improvements at existing booster stations.

Colonial expects to implement the capacity expansion during the last half of 2000. The expansion will increase overall system capacity to approximately 2.35 million barrels per day.

"The planned expansion of our #2 Line is a proactive effort to increase Colonial's capacity to meet existing needs and in advance of demand we expect as we implement strategic objectives and grow our business," noted Bill Berry, scheduling and shipper relations leader for Colonial Pipeline.

Colonial Pipeline Company, based in Atlanta, provides a vital service to communities and businesses throughout Eastern United States. As an integral part of the nation's transportation infrastructure, Colonial is focused on excellence in operations as we transport refined petroleum products. With a workforce of people dedicated to safe and environmentally-conscious operation, Colonial delivers a daily average of 80 million gallons of gasoline, diesel fuel, home heating oil, aviation and military fuels.

As an industry leader, Colonial Pipeline is committed to a high standard of operational excellence. Our corporate vision is to be more than a pipeline company. We are driven to provide enhanced services to our customers in an ever-changing industry marketplace.