A subsidiary of Williams is set to start construction in June on a $60 million natural gas pipeline in western Colorado.
Federal regulators have approved the 27.4 mile stretch of pipe and Salt Lake City–based Northwest Pipeline will operate it.
The line will connect to a hub in western Colorado's Piceance basin.
Williams is the largest gas producer in the basin, which has led Colorado the last few years in the number of new drilling permits.
Other companies on the Western Slope have reduced drilling as the recession worsens.