News Release
April 16, 2001

MARITIMES APPLIES FOR COMPRESSOR STATION EXPANSION

BOSTON – Maritimes & Northeast Pipeline, L.L.C. (Maritimes) has filed an application with the Federal Energy Regulatory Commission (FERC) to operate additional compression units at its existing compressor stations located in Richmond and Baileyville, Maine. Maritimes and its Canadian affiliate transport natural gas from the Sable project located off the coast of Nova Scotia, Canada, to energy markets in Atlantic Canada and the northeastern United States.

In the Northeast, demand for natural gas is increasing, due to both the new, efficient, gas-fired power plants recently completed and continued growth in residential consumption. Additional compression on the Maritimes system will help meet this demand by providing additional supplies of natural gas to the Northeast, enhancing energy security, reliability and flexibility.

"We understand the need to bring more natural gas to the Northeast, and we are responding to that need," said Tom O’Connor, president of M&N Management Company, the managing member of Maritimes. "Maritimes has been operating at near full capacity. With additional compression in Maine, we will be able to transport larger volumes of natural gas to help accommodate the growing market demand throughout the region."

In its application to FERC, Maritimes is seeking to place into service on a full-time basis a standby compressor unit already installed at the Richmond compressor station. In Baileyville, Maritimes is requesting to connect a spare compressor unit within the existing compressor station building and to construct, install and operate any necessary auxiliary facilities. The project is expected to have minimal impact on existing facilities and the environment.

Maritimes hopes to have additional compression available for existing shippers by mid-July, to meet the energy demands of the peak summer season. "Upon FERC approval of our application, we will be ready to move forward to quickly respond to our customers' energy needs this summer," said Bill Penney, senior vice president of M&N Management.

In addition to the proposed expansion, Maritimes can economically expand its system to transport significant quantities of natural gas to Canada and U.S. markets. "The initial Maritimes facilities were designed and constructed with an eye on the future," said O'Connor. "As volumes expand, transportation rates will trend significantly lower thus increasing the competitiveness of our services in all markets and improving business for producers selling into these markets.

"As production of new gas supply becomes available in eastern Canada, Maritimes is uniquely positioned to provide the necessary transportation in a timely manner with minimal impacts to the environment and communities along the route," he said.

Maritimes is owned by affiliates of Duke Energy (37.5 percent); Westcoast Energy, Inc. (37.5 percent); ExxonMobil (12.5 percent); and Emera Inc. (12.5 percent). For more information, contact Maritimes on the Internet at www.mnp-usa.com.

Contact: Marylee Hanley
Phone: 617/560-1573
24 Hour Phone: 704/382-8333
Email: mhanley@duke-energy.com