News Release
April 09, 2001

Duke Energy International awards $100 million pipe contract to OneSteel

Duke Energy International (DEI) today signed a $100 million contract with OneSteel Market Mills for supply of pipe to the Tasmanian Gas Pipeline, Australia’s biggest subsea pipeline project.

The majority of the 700km of onshore and offshore steel pipe will be supplied by OneSteel from its Kembla Grange plant, with thicker wall pipe supplied by Itochu Pipe Management Australia. All of the pipe for the project will be coated by Bredero Shaw Australia Ltd, under subcontract to OneSteel. Pipe manufacture for the project begins this month.

Tasmanian Gas Pipeline Project Manager Carl Fisher said the company was delighted to once again team with OneSteel, following the success of the $450 million DEI Eastern Gas Pipeline project completed in September.

"The use of Australian expertise and resources on this project is a key focus for us. OneSteel, with its specialist resources in the Illawarra region, has the proven track record to deliver," he said.

"The signing of this contract proves the reality of the project – gas is coming to Tasmania. It also signals DEI’s commitment to a second major infrastructure project in as many years. DEI is the only company to commit such significant funding to energy infrastructure in Australia in recent times.

"Our actions prove our commitment to building an integrated network of energy assets. Reliable and competitive energy supply is fundamental to Australia’s economic growth and competitiveness on an international scale.

"This is a significant project for the country and represents a major economic boost for Tasmania."

The Tasmanian Gas Pipeline will transport gas via a 350mm (14 inch) subsea pipeline across Bass Strait from Longford in Victoria to Bell Bay, Tasmania. Onshore pipelines will extend from Bell Bay to Port Latta in the north west and from Bell Bay to Hobart in the south of the State.

DEI is the owner, builder and operator of the $400 million Tasmania Natural Gas Project, which includes conversion of Bell Bay Power Station from oil to gas. The project will create about 900 jobs during construction.

The pipeline initially will have the capacity to transport up to 40 petajoules of gas per year and is expected to deliver gas to Bell Bay in June 2002. Tasmania is currently the only Australian State or Territory without access to a reticulated gas supply. DEI has signed gas supply agreements with several foundation customers including Australian Bulk Minerals and Hydro Tasmania.

Mr Fisher said planning, design and environmental approvals were well underway.

"The staged Environmental Impact Assessment will be on public display over the next few months and subject to licensing and approvals, construction will start in November," he said.

Duke Energy International (DEI), a wholly owned subsidiary of Duke Energy, is one of the world’s leading international energy companies offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across Latin America, Europe and the Asia Pacific. DEI’s Asia Pacific energy portfolio includes 1387km of natural gas pipelines in operation; 840 gross megawatts of thermal power generation in operation and under construction; and energy trading and marketing located in Australia, New Zealand and Indonesia.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses - generating revenues of more than US$49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the internet at: www.duke-energy.com.au.

Contact: Michelle Barry
Phone: 07 3334 5864
24 Hour Phone: 704/382-8333
Email: mlbarry@duke-energy.com
Contact: Tiziana Botti
Phone: 03 6216 3100
24 Hour Phone: 704/382-8333
Email: n/a