News Release
Oct. 13, 1998

TEXAS EASTERN TRANSMISSION CORPORATION TO LEASE NEW CAPACITY TO DAUPHIN ISLAND GATHERING PARTNERS

HOUSTON -- Texas Eastern Transmission Corporation plans to expand its Main Pass system in the Gulf of Mexico and lease the new expansion capacity to Dauphin Island Gathering Partners (DIGP).

Texas Eastern has filed with the Federal Energy Regulatory Commission to build 9.65 miles of 24-inch diameter pipeline loop on its Main Pass system. The new facilities will add an additional 100,000 dekatherms per day (Dthld) of capacity on Texas Eastern’s Main Pass system from the existing DIGP connection to the Venice Processing Plant onshore Louisiana.

Texas Eastern will lease the additional 100,000 Dthld of capacity to DIGP for 15 years beginning Jan. 1, 2000. The cost of the construction is estimated to be $15 million. Construction is scheduled for summer 1999.

"Construction of this new pipeline and the capacity lease to DIGP allows Texas Eastern customers to access new supply sources, and gives DIGP the additional capacity it needs to serve its customers," said Bobby Evans, president of Texas Eastern. "This unique arrangement resulted from an open season Texas Eastern held in February for an expansion of its system in this area."

DIGP is a partnership comprised of subsidiaries of Duke Energy Corporation (37.3 percent), MCN Energy Group Inc. (34.5 percent), The Coastal Corporation (13.6 percent), Consolidated Natural Gas Company (13.6 percent), and Titan Offshore, Inc. (1 percent).

Texas Eastern Transmission Corporation 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 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