News Release
Oct. 16, 1998

TEPPCO PARTNERS, L.P. TO ACQUIRE DUKE ENERGY TRANSPORT AND TRADING COMPANY

HOUSTON, October 16, 1998 -- TEPPCO Partners, L.P. (NYSE: TPP) today announced its agreement to acquire the business of Duke Energy Transport and Trading Company (DETTCO) from Duke Energy Corp.

In consideration, Duke will receive TEPPCO Class B limited partnership units, further linking the success of TEPPCO and Duke. The Class B units will represent an approximate 12% interest in TEPPCO. The transaction is expected to close by December 1, subject to regulatory approval.

The Class B units are substantially identical to TEPPCO’s outstanding common units, but they will not be listed on the New York Stock Exchange. The Class B units will be convertible into common units, if TEPPCO’s unitholders approve the conversion. If conversion is not approved within approximately 16 months, the holder of the Class B units will have the right to sell them to TEPPCO at 95.5% of the then market price of the common units.

DETTCO, based in Oklahoma City, gathers, stores, transports and markets crude oil principally in Oklahoma and Texas, operates two trunkline natural gas liquids (NGL) pipelines in

South Texas and distributes lube oil to industrial and commercial accounts through Lubrication Services, Inc. (LSI). Since inception in 1984, DETTCO has grown steadily, making over a dozen acquisitions, mostly from the major oil companies. The crude gathering and transportation segment has historically accounted for about 71% of DETTCO’s operating margin. The NGL segment’s contribution has been about 24% with LSI accounting for the remaining 5%.

"We are pleased to be able to acquire these assets", said William L. Thacker, chairman, president and chief executive officer. "We view this acquisition as the first step in our entry into the crude oil gathering, transportation, storage and marketing business. It will provide us with the necessary infrastructure and personnel to grow this part of our business, and we foresee a number of opportunities to expand our presence. We expect this purchase to be accretive to TEPPCO’s income and cash flow beginning in 1999. Many of DETTCO’s operational issues are very familiar to us, and we see the acquisition as a good fit and a logical extension of our activities. DETTCO’s philosophy since it was founded has been to create solid margins by closely linking the purchase and sale of crude and utilizing their significant storage and pipeline asset base. This approach greatly reduces commodity risk, and as a result DETTCO has been one of the most consistent and successful companies in the crude gathering business for a number of years. They have performed steadily in both up and down crude markets, maintaining one of the highest per barrel margins in the business."

DETTCO’s crude oil gathering, transportation and storage assets include two major systems and various smaller systems. The Red River System, located on the Texas-Oklahoma border, is the larger system, with 960 miles of pipeline and 750,000 barrels of storage. Deliveries off the Red River System were about 56,000 barrels per day in 1997. The majority of deliveries are made to Cushing, Oklahoma via connecting carriers, or directly to two local refineries. The South Texas System, located west of Houston, consists of 550 miles of pipeline and 550,000 barrels of storage. The majority of the crude oil on this system is delivered on a tariff basis to the Houston refining complex. Deliveries off the South Texas System were roughly 15,000 barrels per day in 1997. The remaining assets, located primarily in Texas and Louisiana, consist of 310 miles of pipeline and 240,000 barrels of storage. Deliveries via these assets are about 20,000 barrels per day.

The NGL systems are located along the Gulf Coast, south of Houston. The Dean NGL Pipeline is 338 miles long with a capacity of 20,000 barrels per day. It originates at the King Ranch and terminates at Mont Belvieu where TEPPCO has a significant asset position. It is currently supported by a 17,000 barrel per day take-or-pay commitment through the end of 2002. The Wilcox NGL Pipeline is a 90-mile long, west to east line and has a capacity of 5,000 barrels per day and currently transports third party volumes at contract rates.

LSI is a subsidiary of DETTCO which distributes products for Mobil and Citgo to pipeline, process industry and other commercial and industrial customers in Colorado, Oklahoma, Southwest Kansas, East Texas and Northwest Louisiana.

The DETTCO operation will function as a business unit of TEPPCO and will continue to be headquartered in Oklahoma City. Mike Cockrell, currently the president of DETTCO, will be president of the new business unit and will report to Thacker. "Mike is well known and respected in the crude supply and transportation community, and we are happy to have him and the other DETTCO personnel join the TEPPCO organization", said Thacker. "Despite some recent acquisitions in the crude gathering business, it is still highly fragmented and a candidate for further consolidation. We are optimistic that the existing DETTCO asset base can continue to grow with the efforts of Mike and his staff."

TEPPCO Partners, L.P. is a publicly owned master limited partnership. TE Products Pipeline Company, Limited Partnership, the operating partnership, is one of one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States.

Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and other factors discussed in TEPPCO’s filings with the Securities and Exchange Commission.

Contact: Eric W. Thode
Phone: (713) 759-3635
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com
Contact: Brenda J Peters
Phone: (713) 759-3954
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com