<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet of Phillips Gas Company as of September 30,
1997, and the related consolidated statement of income for the nine-month
period ended September 30, 1997, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                         112,465
<SECURITIES>                                         0
<RECEIVABLES>                                  178,517
<ALLOWANCES>                                       626
<INVENTORY>                                      7,863
<CURRENT-ASSETS>                               304,771
<PP&E>                                       2,050,182
<DEPRECIATION>                               1,118,111
<TOTAL-ASSETS>                               1,281,610
<CURRENT-LIABILITIES>                          266,306
<BONDS>                                        310,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                    345,000
<COMMON>                                       142,917
<OTHER-SE>                                     175,895
<TOTAL-LIABILITY-AND-EQUITY>                 1,281,610
<SALES>                                      1,187,045
<TOTAL-REVENUES>                             1,251,412
<CGS>                                        1,113,864<F1>
<TOTAL-COSTS>                                1,113,864
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              14,569
<INCOME-PRETAX>                                111,736
<INCOME-TAX>                                    42,958
<INCOME-CONTINUING>                             68,778
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    68,778
<EPS-PRIMARY>                                        0<F2>
<EPS-DILUTED>                                        0<F2>
<FN>
<F1>Gas purchases + Operating expenses + Depreciation.
<F2>Income per share of common stock has been omitted because all common
     stock is owned by Phillips Petroleum Company.
</FN>