News Release
Oct. 23, 1998

DUKE ENERGY MARKETING L.P. ANNOUNCES TWO CONTRACTS WITH NOVA SCOTIA INDUSTRIAL CUSTOMERS

HOUSTON -- Duke Energy Marketing L.P. has signed two long-term contracts to supply natural gas produced from the Sable Island area to be delivered to Stora Port Hawkesbury Limited and CGC Inc. in Nova Scotia.

Duke Energy will purchase the natural gas from Mobil Canada under a long-term supply arrangement. This contract will provide up to 11.5 million cubic feet per day of natural gas to these industrial customers for at least a five-year period. Delivery is expected to begin when the Sable Offshore Energy Project produces its first gas, which is scheduled for November 1999. Both customers are located on the proposed Point Tupper lateral of Maritimes and Northeast Pipeline. Stora Port Hawkesbury, which recently completed a large investment program that enables the company to produce 350,000 tons of paper per year and 190,000 tons of newsprint a year, is the largest energy user in Nova Scotia. CGC is one of the largest Canadian building products manufacturers.

Duke Energy’s first long-term contract to supply Mobil’s natural gas produced from the Sable area was signed in April to deliver gas to the Irving Group of companies, whose holdings include oil, transportation and forestry.

The Sable owners estimate the reserve potential of the project at 3.5 trillion cubic feet (Tcf). Mobil’s 50.8 percent interest in these reserves is approximately 1.8 Tcf.

"These contracts will allow Duke Energy to deliver new energy solutions to those industrial customers as we have done with other customers in Canada and the United States," said Alfred Sorensen, president of Duke Energy Marketing L.P.

"Mobil is delighted to see the strong Canadian demand for Sable gas, which is higher than we had originally anticipated," said Paul Bennett, vice president, Nova Scotia Business Unit, Mobil Canada. "More than one-third of our initial Sable production is committed to Canadian firms. We’re also very pleased that our first sales of natural gas in Nova Scotia are to significant industrial customers in Cape Breton. These sales contracts provide the gas supply needed to help ensure the economic viability of the lateral pipeline to Point Tupper."

Duke Energy Marketing L.P. is the Canadian trading arm of Duke Energy Trading and Marketing, L.L.C., which is 60 percent owned by Duke Energy and 40 percent owned by Mobil. Duke Energy Trading and Marketing markets electric power and natural gas to utilities, municipalities and other large energy users and provides comprehensive related services, including risk management and total energy management. Duke Energy and Mobil also are among the owners of Maritimes & Northeast Pipeline, which will bring Sable gas to the northeastern United States.

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