press release

Unocal increases stake in Alliance Pipeline project

Brea, Calif., Jan. 14, 1998 - Unocal Corporation said today it has increased its interest in the Alliance Pipeline project to 9.1 percent, by acquiring the partnership interests of Ranger Oil Limited and Pinnacle Resources Ltd. Details of the transactions, including share and unit prices, were not disclosed.

Prior to the transactions, various Unocal subsidiaries held a 5.0 percent equity stake in the Alliance Pipeline limited partnerships.

"The Alliance Pipeline project is an excellent long-term market-to-resource opportunity for Unocal," said Brian C. Conners, Unocal's general manager for pipelines. "This pipeline provides us with three major earnings sources -- increased value of our Aitken Creek and other upstream gas assets in Canada, a strong revenue stream from pipeline tariffs, and good returns on the natural gas liquids plant."

The Alliance Pipeline system is designed to carry natural gas from western Canada to the Chicago-area market center for distribution throughout North America. Unocal's Aitken Creek gas storage and processing facility is located at the origin of the pipeline. The $US3.0 billion, 1,900-mile-long, large-diameter pipeline and natural gas liquids extraction plant are being developed by Canadian and U.S. limited partnerships comprised of gas producing, marketing and pipeline companies. The projects are scheduled for start-up in late 1999 subject to receiving necessary Canadian and U.S. approvals.

The Alliance Pipeline currently has long-term shipper commitments to transport 1.3 billion cubic feet of gas per day from Canada into the U.S.

Updated: January 1998