News Release
June 11, 1998

DUKE ENERGY FIELD SERVICES PURCHASES LOUISIANA GAS PLANTS

HOUSTON -- Duke Energy Field Services, Inc. increased its gas processing and gathering services capabilities in Louisiana through the acquisition of the Haynesville Gas Processing and fractionation facility and related natural gas and natural gas liquids pipeline systems from Dynegy Midstream Services, Limited Partnership.

The gas processing facilities consist of two processing plants with the capacity to process 85 million cubic feet per day of natural gas. The facilities are located in Claiborne and Webster parishes.

"The acquisition of these facilities is a excellent fit with our existing processing and gathering facilities in Louisiana and allows Duke Energy Field Services to expand its gathering, compression and processing services along the Louisiana/Arkansas state line. This area continues to experience significant growth in drilling activity," said Jim Mogg, president of Duke Energy Field Services.

On April 1, Duke Energy Field Services also began deliveries into the Perryville Hub in northern Louisiana through a new 4.5-mile natural gas pipeline and the addition of 7,500 horsepower of mainline compression. The expansion enables Duke Energy to provide its customers an incremental 100 million cubic feet per day of delivery capacity into the major transmission pipelines serving the Midwest and Northeast markets.

Duke Energy Field Services Inc., gathers and processes natural gas and is the nation’s fourth largest producer and a leading marketer of natural gas liquids. The company also provides intrastate natural gas transportation and storage, and financial services for producers.

Duke Energy, based in Charlotte, N.C., was founded in 1904 by James Buchanan Duke. Last year, Duke Power merged with Houston-based PanEnergy to create Duke Energy (NYSE:DUK), which is a global energy company with $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 P. Barnett
Phone: 713-627-4072
24 Hour Phone: 704-594-0681
Email: media_relations@duke-energy.com