News Release
Feb. 24, 1999

DUKE ENERGY ACQUIRES CANADIAN MIDSTREAM ASSETS FROM COMETRA ENERGY

DENVER Duke Energy Services Canada Ltd. has acquired natural gas gathering and processing assets from privately held Cometra Energy (Canada) Ltd. for an undisclosed amount.

The assets are located in northwestern Alberta and include the Fourth Creek sour gas processing plant and gathering system capable of handling 69 million cubic feet per day (MMcf/d) of raw natural gas supply. Duke Energy also has acquired Cometra’ s interests in the recently approved Pouce Coupe Plant, a 22.5 MMcf/d sour gas processing plant that is scheduled to be in service by the end of June. The Pouce Coupe Plant will be integrated into the western end of the 100-mile Fourth Creek gas gathering system near the British Columbia provincial border. An extension of the gathering system into British Columbia is underway following an approval from the National Energy Board on February 5.

This acquisition marks Duke Energy’s entry into the Canadian midstream business. DukeEnergy is well-positioned in the United States midstream business through its DukeEnergy Field Services Inc. subsidiary and views western Canada as a natural extension of its North American midstream business.

"These midstream assets have access to growing regional gas supplies and are strategically located near TransCanada’s NOVA pipeline system and the planned Alliance Pipeline. This purchase represents a solid initial entry into the Canadian midstream business," said Jim Mogg, president of Duke Energy’s Canadian and U.S. midstream business units.

"It was a pleasure working with Duke Energy on this transaction, and we hope to have a long and successful relationship with Duke Energy," said Ken Hayes, president and chief executive officer of Cometra.

Cometra Energy (Canada) Ltd., a wholly owned subsidiary of Electrafina S.A. of Brussels, Belgium, has been in business in Western Canada for 10 years, conducting oil and gas exploration and production operations as well as midstream facilities operations. The midstream processing and transportation assets sold by Cometra were a portion of their midstream assets, which were previously operated by their wholly owned subsidiary, Canrock Pipeline Company, Ltd., also of Calgary, Alberta. Electrafina is a publicly traded company located in Brussels, Belgium, which is controlled by Groupe Bruxelless Lambert, also of Brussels.

Duke Energy Services Canada Ltd. has established a division named Duke Energy Midstream Services that will be located in Calgary along with the company’s existing energy marketing business, Duke Energy Marketing Limited Partnership.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, North Carolina, the company reaches into more than 50 countries producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy provides electric service to approximately 2 million customers in North Carolina and South Carolina, operates interstate pipelines that deliver natural gas to various regions of the country, and is a leading marketer of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com.

Contact: John P. Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com