[EXHIBIT 20 TO COLONIAL GAS COMPANY FORM 8-K DATED July 22, 1997]

FOR IMMEDIATE RELEASE:
July 22, 1997

CONTACTS: Dennis Carroll                     Jane Michalek
          Vice President and Treasurer       Vice President
          Colonial Gas Company               Cabot LNG Corporation
          (508) 322-3413                     (617) 526-8333


          COLONIAL GAS COMPANY AND CABOT LNG CORPORATION
               RESPOND TO DPU DECISION


Lowell, MA (July 22, 1997)----Colonial Gas Company and Cabot
LNG Corporation reported today that the Massachusetts Department
of Public Utilities (DPU) has declined to approve the 20-year 
contract relating to utilization of Colonial's Tewksbury 
Massachusetts LNG facility under their proposed joint venture. 
The DPU concluded that it could not make an appropriate
determination of the Tewksbury LNG facility's value until
comprehensive unbundling and a fully competitive natural gas 
market occurred. In that connection, the DPU concurrently issued 
a letter to Colonial and the other investor-owned gas utilities 
in Massachusetts directing them to commence by August 15, 1997
collaborative discussions on developing unbundled retail natural 
gas services, and to issue a status report on their discussions
by November 15, 1997. The proposed joint venture arrangements
would have combined Cabot LNG's resources with those of the 
Tewksbury LNG facility and with Colonial's LNG trucking subsidiary, 
Transgas Inc., in order to provide additional LNG trucking, storage 
and related services to the energy market in the Northeast United 
States.

Consistent with the DPU's decision, Colonial and Cabot LNG are 
examining other ways in which to enhance the overall value of LNG 
as a competitive peak season and supplemental fuel choice. F. L. 
Putnam, III, President and CEO of Colonial Gas Company, said: 
"Colonial continues to believe that LNG related services will be 
increasingly important as the natural gas industry evolves toward 
further unbundling and greater customer choice. Although we are 
disappointed by the DPU's decision on the proposed joint venture
contract, we remain committed to looking for ways to enhance
the utilization of existing assets for the benefit of our customers 
and stockholders."

Colonial Gas Company (NASDAQ: CGES), a Massachusetts corporation 
formed in 1849, is primarily a regulated natural gas distribution
utility.  Colonial serves over 149,000 utility customers in 24 
municipalities located northwest of Boston and on Cape Cod. Through 
Transgas, a wholly-owned subsidiary, Colonial also provides 
over-the-road transportation of liquefied natural gas, propane, and 
other commodities.

Cabot LNG Corporation, established in 1989, is a subsidiary of 
Boston-based Cabot Corporation (NYSE: CBT).  Cabot LNG imports 
liquefied natural gas via the Everett, Mass., LNG import terminal 
owned by its subsidiary, Distrigas of Massachusetts Corporation, to 
meet the specialized needs of gas and electric utilities,
independent power producers and industry.  Cabot LNG holds a 10
percent interest in the LNG export project developed by Atlantic
LNG Company of Trinidad and Tobago at Point Fortin, Trinidad, and holds
purchase contracts for 60 percent of the plant's design
capacity of approximately 400 million cubic feet of LNG per day
which is targeted for Northeast markets.




[END OF EXHIBIT 20 TO COLONIAL GAS COMPANY FORM 8-K DATED
JULY 22,1997]