News Release
Sept. 22, 1999

Duke Energy International and EnergyAustralia

Duke Energy International (DEl) and EnergyAustralia today announced a gas supply agreement that will open the NSW market to true competition for the first time.

EnergyAustralia’s entry into the gas market has been made possible through an agreement with Duke Energy Australia Trading and Marketing (DEATM), a unit of Duke Energy International.

DEl Group General Manager, Mr Kevin Howell said, "As Australia’s gas supply infrastructure continues to grow, competition in the market will spread. DEATM’s expertise in wholesale gas supply management will position us as the leader in these dynamic marketplace changes."

"EnergyAustralia’s entry into the gas market means that major customers now have a viable and competitive alternative for the supply of gas in NSW," said Paul Broad, EnergyAustralia Managing Director.

"This is a turning point for the industry and our agreement with DEl will deliver more choice to consumers and drive real competition in the NSW gas market. Our retail skills will ensure consumers cost effective and secure service," he said.

EnergyAustralia will buy gas from DEATM to supply customers from October this year. Beginning in August 2000, the gas will be transported through the DEl Eastern Gas Pipeline.

The $450 million Eastern Gas Pipeline will link the Gippsland basin gas fields in the Bass Strait with NSW regional and metropolitan industrial centres including Sydney, Wollongong and Newcastle.

"The Eastern Gas Pipeline will help spur industrial growth and for the first time provide genuine choice to the market. DEl will be in a position to offer tailored energy services to the wholesale NSW market," said Mr. Howell.

DEl is the owner, builder and operator of the Eastern Gas Pipeline project. The company is the international development and asset management unit of Duke Energy (NYSE: DUK), a global energy company with industry-leading technical and operating expertise. DEl develops, owns and operates energy projects including natural gas and electric assets, as well as marketing and trading operations throughout the Asia Pacific, Europe and South America.

Duke Energy (NYSE: DUK) is a global energy company with more than US$29 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. Additional information about the company is available on the Internet at: www.duke-energy.com.

Contact: Michael Snell
Phone: 07 3334 5865
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com