News Release
May 10, 1999

Maritimes & Northeast Pipeline Begins Mainline Construction in the U.S.

BOSTON – Maritimes & Northeast Pipeline, L.L.C. (Maritimes) project officials in the United States announced the start of construction of the 203-mile mainline natural gas pipeline that will extend from the U.S. Canadian border near Baileyville, Maine to Westbrook, Maine. Maritimes and its Canadian affiliate will transport natural gas from the Sable Offshore Energy Project off the coast of Nova Scotia to markets in Atlantic Canada and the Northeast U.S.

Construction begins with the clearing and grading of the right-of-way along the designated route followed thereafter by ditching and pipe installation. Earlier this year, Maritimes successfully completed the horizontal directional drill crossings of the Androscoggin and St. Croix Rivers.

In Maine, a workforce of over 3,000 people is expected to work on the project throughout the course of construction. Construction and its related activities will stimulate local economies along the route from Baileyville to Westbrook. Currently, more than 250 Maine companies are working on the project with Maine contractors providing crews for clearing of the right-of-way, blasting, trucking and surveying as well as general construction work. In addition to Maine residents working on the pipeline, local businesses such as construction material suppliers, equipment rentals, fuel suppliers and others will provide services during construction.

"Together with our Canadian affiliates, we are building an international infrastructure that will bring new supplies of natural gas to Atlantic Canada and the Northeastern United States. Our job over the next six months is to construct this pipeline safely and consistent with our environmental permits, while meeting our in-service date of November 1," said Tom O’Connor, president of M & N Management Company, managing member of Maritimes.

Maritimes’ general contractors -- Sheehan Pipe Line Construction Co., H.C. Price Company and Latex Construction Company -- are building the pipeline in three sections in Maine.

Maritimes is owned by affiliates of Duke Energy Corporation (37.5%), Westcoast Energy Inc. (37.5%), Mobil Corporation (12.5%) and Nova Scotia Power Inc. (12.5%). Duke Energy, through its affiliates, is responsible for the overall development of the $1.2 billion Maritimes project and directly responsible for the U.S. portion of the project. Westcoast Energy Inc., a major energy company located in Vancouver, British Columbia, is responsible for the development of the Canadian pipeline portion of the project. Contact Maritimes on the World Wide Web at www.mnp-usa.com.

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

Contact: Brian Prenda
Phone: (617) 560-1450
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com