press release

Unocal Canada to expand capacity of Aitken Creek gas storage facility

Calgary, Alberta, Nov. 5, 1998 -- Unocal Canada Limited today said it had received approval from the British Columbia Ministry of Energy and Mines to increase the permitted maximum storage capacity of the Aitken Creek natural gas storage reservoir.

Approval of the increased maximum permitted capacity will enable Unocal Canada to initially increase the working gas capacity of the Aitken Creek facility by 20 percent to 48 billion cubic feet (bcf) as early as the second quarter 1999. Ultimately, Unocal Canada could increase working gas capacity of Aitken Creek to 80 bcf, or double the current capacity.

Unocal Canada sought to increase the maximum permitted capacity in anticipation of a connection to the planned Alliance Pipeline, which is expected to begin delivering gas from Western Canada to the U.S. Midwest in 2000.

Aitken Creek is a major underground gas storage facility located in northeast British Columbia and is connected to the Westcoast Transmission System. Gas from the facility currently serves markets in Western Canada and the U.S. Pacific Northwest. Unocal Canada offers a variety of gas storage services at Aitken Creek for natural gas producers, marketers and end-users, including firm storage, parking, loaning and other marketing services.

Unocal Canada operates Aitken Creek and owns a 93.79 percent working interest in the facility. The remaining interest is owned by Amoco Canada Petroleum Company Limited.

Unocal Canada is a wholly owned subsidiary of Unocal Corporation, a leading global oil and gas exploration and production company with significant pipeline and power plant project developments worldwide. Amoco Canada is a wholly owned subsidiary of Amoco Corporation, a global producer of oil, natural gas, refined products and chemicals.

For further information about Unocal's natural gas marketing services in Canada, contact Jim Avioli of Unocal Canada Limited, 403-268-0180, or visit the Aitken Creek web site.

Updated: November 1998