News Release
June 25, 1998

DUKE ENERGY FIELD SERVICES OPENS NEW SOUTHEAST TEXAS PROCESSING PLANT

HOUSTON - - Duke Energy Field Services, Inc. increased its natural gas processing capabilities in Southeast Texas by 100 million cubic feet per day (MMcf/d) with the start-up of its new West Beaumont (Texas) plant Wednesday.

"Duke Energy Field Services built this new plant to offer producers additional processing services to keep pace with the increased supply," said Jim Mogg, president. "This area continues to have significant growth in drilling, largely as a result of new technology producers are using to give them higher success rates."

The cryogenic plant, located on the Centana Intrastate Pipeline Company system, will offer producers state-of-the-art recoveries of natural gas liquids. Combined with its 200 MMcf/d processing plant at Port Arthur, Texas, Duke Energy Field Services now has a total of 300 MIMcf/d of processing capability in Southeast Texas.

"Duke Energy Field Services continues to expand its gathering and processing capabilities along the Gulf Coast through new construction and acquisitions," Mogg said.

The company acquired the 85 MMcf/d capacity Haynesville, La., gas processing and fractionation facility and related natural gas and natural gas liquids pipeline systems from Dynegy Midstream Services, Limited Partnership on April 20.

In early April, 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 MMcf/d of delivery capacity into the maj or transmission pipelines serving the Midwest and Northeast markets. The company also expanded its South Texas gathering and processing capabilities with the acquisition of the 90-mile Brooks-Hidalgo Pipeline natural gas gathering system.

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 (NYSE:DUK) is a global energy company with more than $24 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) 382-8333
Email: media_relations@duke-energy.com