News Release
Nov. 30, 2000

Gulfstream Natural Gas System Signs Purchase Agreement With Florida Pipe Supplier

DETROIT, Nov. 30, 2000 — The Coastal Corporation today announced that its Gulfstream Natural Gas System, L.L.C., has signed a $310 million purchase agreement with Berg Steel Pipe Corporation, of Panama City, Fla., providing for Berg to manufacture and deliver most of the steel pipe needed to build the Gulfstream Natural Gas System.

This purchase agreement covers all of the 36-inch diameter pipe requirement for the offshore section of Gulfstream as well as the entirety of the 36- and 30-inch diameter pipe that will be used to construct the onshore segment in Florida. Berg, a wholly owned subsidiary of Europipe GmbH (Ratingen, Germany), was previously selected on the basis of a competitive bidding process.

Production will begin immediately. The pipe will be delivered to Port Manatee, Fla., and Mobile, Ala., starting early in 2001. All of the pipe will be delivered by September 2001 and will exceed U.S. Department of Transportation safety standards.

"The signing of this purchase agreement with Berg represents a major milestone in the development of the Gulfstream Natural Gas System and keeps the project on track for meeting its targeted in-service date of June 2002," said David A. Arledge, chairman and chief executive officer of The Coastal Corporation. "In addition, our selection of a competitive Florida supplier brings substantial economic benefits to the state as well."

The proposed 744-mile Gulfstream Natural Gas System will originate near Mobile, Ala., and cross the Gulf of Mexico to Manatee County, Fla. In Florida, 292 miles of main line and laterals, ranging in diameter from 36 inches to 16 inches, are planned to deliver environmentally preferred natural gas to fuel new electric-generation capacity throughout the state.

The main line terminates in Palm Beach County, near Florida’s East Coast. Gulfstream will transport to Florida up to 1.13 billion cubic feet per day of natural gas from sources in Alabama and Mississippi. This will help ensure that there is an adequate supply of clean, dry natural gas to meet Florida’s growing energy needs.

Ten nonaffiliated utility and power-production customers have made long-term, binding commitments for the majority of the capacity on the system.

In October 1999, Gulfstream filed an application with the Federal Energy Regulatory Commission (FERC) to build and operate the $1.6 billion natural gas delivery system. FERC subsequently conducted a series of environmental scoping meetings and currently is preparing an environmental impact statement for the project.

Additional information about the Gulfstream Natural Gas System is available at www.gulfstreamgas.com or by calling 1-888-GAS-4-FLA (1-888-427-4352).

On Nov. 17, 2000, subsidiaries of Duke Energy (NYSE:DUK) and Williams (NYSE:WMB) announced their intent to jointly purchase Coastal’s 100 percent interest in Gulfstream. The Gulfstream purchase, expected to be finalized during the fourth quarter 2000, is subject to federal regulatory approvals and conditioned upon completion of the Coastal/El Paso Energy Corporation merger.

The Coastal Corporation (NYSE:CGP) is a Houston-based energy holding company with consolidated assets of $16 billion and subsidiary operations in natural gas transmission, storage, gathering/processing and marketing; oil and gas exploration and production; petroleum refining, marketing and distribution; chemicals; power production; and coal. Coastal and El Paso Energy Corporation (NYSE:EPG) announced on Jan. 18 a definitive agreement to merge Coastal with a subsidiary of El Paso, subject to various approvals. The merger is expected to be completed during the fourth quarter of this year. Coastal's World Wide Web site at www.coastalcorp.com provides additional information on the company.

Contact: Joe Martucci
Phone: (313) 496-5079
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Stan Mays
Phone: (713) 877-7745
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com