UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                    Form 8-K
                                        
                                 CURRENT REPORT
                                        
                                 
      Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
                                    1934
                                 
                                 
            Date of Report (Date of Earliest Event Reported):
                                 
                            September 26, 1997
                                 
                                 
                       COMMISSION FILE NO. 0-25842
                                 
                    Pacific Gas Transmission Company
           (Exact name of registrant as specified in its charter)
                                        
                                        
                                        
           California                            94-1512922
 (State or other jurisdiction of        (I.R.S. employer Identification No.)
 incorporation or organization)             
                                                  
2100 SW River Parkway, Portland, OR                 97201
(Address of principal executive                   (Zip code)
            offices)



       Registrant's telephone number, including area code:  (503) 833-4000


ITEM 5.  OTHER EVENTS

     Pacific Gas Transmission Company (PGT) is a wholly owned subsidiary of PG&E
Gas   Transmission  Corporation,  which  in  turn,  is  wholly  owned  by   PG&E
Corporation.   On  September 26, 1997, PGT sold its Australian subsidiaries  and
its  interest  in  the PG&E Queensland Gas Pipeline to another PG&E  Corporation
affiliate  for $42 million.  Since this transaction was between entities  within
the  PG&E  Corporation consolidated group, no gain or loss was  recognized  upon
disposition.   The  subsidiaries included PG&E Gas Transmission  Queensland  Pty
Limited (PG&E Queensland), the operator of the PG&E Queensland Gas Pipeline, and
PG&E  Gas  Transmission Australia Pty Limited (PG&E Australia).  PG&E  Australia
was  established to pursue new business development opportunities  in  Australia
for  PGT  and  to serve as trustee of the PG&E Queensland Unit Trust  (PG&E  Qld
Trust).   The  PG&E Qld Trust, which held the assets of the PG&E Queensland  Gas
Pipeline,  was  owned  by Pacific Gas Transmission International,  Inc.  (a  PGT
wholly owned subsidiary) and PG&E Queensland.




                                    SIGNATURE
                                        
     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                            PACIFIC GAS TRANSMISSION COMPANY
                                        (Registrant)



October 6, 1997          By:  /s/   STANLEY C. KARCZEWSKI
                         -------------------------------- 
                         Name:      Stanley C. Karczewski
                         Title:     Vice President and Chief Financial Officer
                                    and Controller