News Release
Nov. 17, 1999

PRIMARY ENERGY, BP AMOCO AWARD CONTRACT TO DUKE/FLUOR DANIEL FOR ENGINEERING, PROCUREMENT AND CONSTRUCTION FOR COGENERATION PROJECT AT U.S.’S FOURTH LARGEST REFINERY

CHARLOTTE, N.C.- Duke/Fluor Daniel announced today that it has been selected by Primary Energy, Inc., a subsidiary of NiSource Inc., and BP Amoco to provide turnkey engineering, procurement and construction services for a 525-megawatt, gas-fired cogeneration facility at BP Amoco’s Whiting Refinery in Indiana. Construction of the $250 million plant began this year, with completion planned for the second quarter of 2001.

"This is a progressive project in every sense of the word," said Clarence Ray, Jr., president and CEO of Duke/Fluor Daniel. "It will deliver process steam for the refinery and power generation at a new level of efficiency and reliability. Because of its links with both power and refined products it will provide benefits across a broad section of the energy value chain. Also important from Duke/Fluor Daniel’s perspective is that this facility provides us an opportunity to continue our ongoing relationship with Primary Energy and to build a new relationship with BP Amoco."

Previously, Duke/Fluor Daniel completed construction of the Cokenergy Project for Primary Energy in 1998, an innovative facility that captures waste heat from coke production to help generate process steam and electricity.

Joe Turner, president of Primary Energy, said the Whiting plant would be the largest industrial energy project in Indiana. "Because of the high level of efficiency, coupled with the use of clean-burning natural gas and advanced environmental technologies, this venture also will support Whiting refinery’s and NiSource’s commitment to a clean environment," Turner said.

Colin Maclean, business unit leader of Whiting Refinery, said the project would play a role in making the refinery globally competitive while reducing environmental impacts. "The cogeneration of power and steam is aligned with BP Amoco’s leadership in reducing greenhouse gases," Maclean said.

The Whiting Refinery, part of BP Amoco PLC, has the capacity to process 415,000 barrels of crude oil daily and is the fourth largest refinery in the United States.

Primary Energy Inc., a wholly owned subsidiary of NiSource (NYSE: NI), invests in and manages projects that optimize energy productivity, while reducing operating costs for large, energy-intensive industrial and commercial complexes. Primary Energy specializes in on-site electric and steam-generating facilities, and acts with a strong customer focus to assure its customers’ objectives are being met. Target markets include the steel, refining, chemical, food products, and pulp and paper industries in North America. Duke/Fluor Daniel, formed in 1989 by Duke Energy Corporation and Fluor Daniel, Inc., provides comprehensive engineering, procurement, construction, and operating plant services for fossil-fueled electric power generation facilities worldwide.

Duke Energy (NYSE:DUK) is a global energy company with more than $29 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: http://www.duke-energy.com

Fluor Daniel, Inc. is the engineering, procurement and construction subsidiary of Fluor Corporation (NYSE:FLR). In 1998, Fluor Corporation revenues were $13.5 billion.

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