News Release
June 02, 1999

DUKE ENERGY INTERNATIONAL AWARDS EASTERN GAS PIPELINE CONSTRUCTION CONTRACT

BRISBANE, QUEENSLAND, AUSTRALIA -- Duke Energy International (DEI) today announced the mainline construction contract for the $450M Eastern Gas Pipeline has been awarded to the Transfield/Willbros/Macmahon (TWM) joint venture.

The TWM joint venture will start construction of the 795km pipeline in August with gas flowing from the Gippsland Basin to Sydney by the Olympics in September 2000.

TWM brings together one of the world’s leading pipeline contractors (Willbros), one of Australia’s largest providers of infrastructure services (Transfield) and a leading Australian civil engineering contractor (Macmahon). All three enjoy a well-earned reputation for delivering major projects in an environmentally and socially responsible manner.

DEl Eastern Gas Pipeline General Manager Mark Landseidel said several major consortiums bid for the job during an extensive four-month tender and negotiation process.

"We are confident the TWM joint venture has the technical skill, attention to detail, experience and environmental track record to meet our stringent requirements," he said.

"This is a significant project for the country in that it brings gas-on-gas competition to the Sydney market and opens the way for economic growth in metropolitan and regional areas of Australia."

Transfield Managing Director Guido Belgiorno-Nettis said on behalf of TWM, the joint venture was delighted to win the construction contract for such a major project.

"This is a fiercely competitive international business and we’ve worked very hard to fully research and develop a comprehensive tender package. We look forward to getting on with the job and to working with a company of Duke Energy International’s experience and reputation," he said.

DEI last month awarded the pipe order contract to BHP Steel. Pipe will be manufactured at the Kembla Grange plant of BHP Oil and Gas Pipe which will source the remainder of the requirements from Japanese pipe mills. All of the pipe for the project will be coated by Bredero Shaw Australia Ltd, whose plant is also located at Kembla Grange.

The 795km Eastern Gas Pipeline will transport gas from Longford in Victoria to Sydney, NSW, passing through the towns and regions of Bairnsdale, Orbost, Cann River, Bombala, Cooma, Nowra, Port Kembla, Wollonoona and Wilton.

Contact: Michelle Barry
Phone: 07 3334 5853
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com