News Release
Jan. 23, 1998

ENERGY COMPANIES FORM JOINT VENTURETO DEVELOP CROSS BAY PIPELINE TO SERVE NEW YORK

HOUSTON - - Duke Energy Corporation and Williams have agreed to form a joint venture to develop a new natural gas pipeline project into New York City.

The new project, called the Cross Bay Pipeline, combines Duke’s previously announced Excelsiorsm project with the existing Long Beach delivery facilities on Williams’ Transco system into a new integrated delivery pipeline. The jointly developed project will be designed to meet market demand through a phase-in of additional capacity and will provide improved access to upstream supply options.

The initial phase of the project is targeted for service in 1999. Subsequent phases will provide additional natural gas delivery service and will be timed to meet market demand. The joint venture will be created through subsidiaries of Duke Energy and Williams.

The Cross Bay Pipeline will be a stand alone entity with direct connections to the Texas Eastern Transmission Corporation (TETCO) and Transco pipeline systems giving shippers utilizing the system numerous upstream options. Deliveries into Cross Bay Pipeline can be made through existing pipeline capacity and projects under development such as the Independence Pipeline and Williams’ MarketLink expansion or Duke Energy’s Spectrumsm project, which will move natural gas from the Chicago area east.

"This joint venture offers extremely attractive features to the New York City gas market," said Cuba Wadlington Jr., senior vice president and general manager, Williams Gas Pipelines - Transco. "The Cross Bay Pipeline is positioned to serve the future needs of this market by offering flexibility to choose upstream suppliers with access to numerous supply basins combined with being strategically located to deliver to the area served by the utility systems operated by the New York Facilities Group."

"The Cross Bay Pipeline project creates an important new delivery system into the New York metropolitan area to satisfy growth into the next decade resulting from a strong local economy and energy deregulation," said Fred Fowler, group president of energy transmission for Duke Energy. "The combination with Transco allows the project to satisfy the growing demand for natural gas while making it possible to phase in volumes to match market requirements."

The Cross Bay Pipeline will provide up to 700,000 Dekatherms per day of natural gas deliveries on a phased-in basis and increase delivery capability into New York by over 25 percent when completed.

The Cross Bay Pipeline will expand Transco’s Long Beach facilities ultimately leading to the completion of a new parallel line. Deliveries into the project can be made from connections to the Transco and TETCO systems in New Jersey, and will enter the New York Facilities Group grid at the existing Long Beach delivery point and a new service point in the JFK Airport area. The cost of the project has not been finalized.

The companies will be announcing an open season for capacity this spring and plan to file later this year for Federal Energy Regulatory Commission approval.

For more information regarding the project, contact Patrick Gibson 617/560-1454 or e-mail at PT Gibson@www.duke-energy.com or Orlando Alvarado at Williams at 713/215-3378 or e-mail at orlando.x.alvarado@tgpl.twc.com.

Williams, through its subsidiaries, is the nation’s largest volume transporter of natural gas and provides a full range of traditional and leading edge energy and communications services. (NYSE:WMB) Williams information is available on the World Wide Web at http://www.twc.com.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $20 billion in assets. Duke Energy companies provide electric service to approximately 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

 

Contact: John Barlett
Phone: 713 627-4072
24 Hour Phone: 704 382-8333
Email: media_relations@duke-energy.com