News Release
June 30, 1998


HOUSTON - Trunkline Gas Company today filed with the Federal Energy Regulatory Commission (FERC) to remove from natural gas service its 26-inch diameter pipeline that extends from Longville, La., to Bourbon, Ill.

As part of the filing to take the pipeline out of service, Trunkline has asked FERC for permission to transfer the pipeline to another Duke Energy subsidiary. This subsidiary has entered into an option agreement with Aux Sable Liquid Products L.P., one of the Alliance Pipeline project partnerships, to support its plan to convert the line for the transportation of hydrocarbon vapor.

The Alliance Pipeline project is designed to transport high British thermal unit natural gas from Western Canada to the Chicago-area for distribution throughout North America. The pipeline is scheduled for start-up in late 2000 and is being developed by limited partnerships. The pipeline is pending approval by the FERC in the United States and the National Energy Board in Canada.

Under the terms of their negotiated transportation service agreements, Alliance shippers have an opportunity, depending on market conditions, to include natural gas liquids (NGLs) as part of the natural gas stream transported on Alliance. Aux Sable, which has the right to extract the liquids, intends to build and operate an NGL extraction facility in the Chicago area. Aux Sable plans to use the converted 26-inch pipeline to transport a portion of those liquids as hydrocarbon vapor from that plant to the Gulf Coast and other markets.

Trunkline will continue to own and operate its two other parallel pipelines - - a 30-inch and 36-inch diameter - - to serve its firm natural gas transportation customers in the Midwest. Trunkline’s remaining capacity is about 1.6 billion cubic feet per day.

"Trunkline is not getting out of the natural gas transportation business," said Steve Roverud, chairman of Trunkline. "This is simply a more effective use of one of our assets. Overcapacity in the Midwest has caused Trunkline to transport gas at deeply discounted rates for several years. We will continue to have adequate capacity to serve our long-term, firm transportation customers."

Trunkline has asked FERC to grant the abandonment authorization in time to separate the pipeline from existing facilities and allow Aux Sable to convert the pipeline to hydrocarbon vapor service by Oct. 1, 2000.

Trunkline Gas Company is a subsidiary of Duke Energy Corporation. 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

Contact: John P. Barnett
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