News Release
Jan. 16, 2001

DUKE ENERGY’S MARKET HUB PARTNERS ANNOUNCES EXPANSION OF NATURAL GAS STORAGE FACILITY IN LOUISIANA

HOUSTON – Market Hub Partners LP (MHP), a division of Duke Energy Gas Transmission announced today it will incrementally expand its Egan, La., natural gas, salt cavern storage facility from 12 billion cubic feet (Bcf) to 16 Bcf.

MHP has filed with the Federal Energy Regulatory Commission for the necessary authorization to begin the $9 million expansion. MHP expects to reach 16 Bcf of working storage capacity by 2005.

"A return to normal winter weather patterns and increased commodity volatility underscore the need for more storage capacity and deliverability," said Robert B. Evans, president of Duke Energy Gas Transmission. "The Egan expansion will create additional services for both firm and interruptible customers to meet the needs of traditional customers as well as our growing power generation customer base."

The expansion project is an ideal way for companies to manage some of the recent market volatility and reduce costs associated with market fluctuations while increasing the security of deliverability.

With Egan and a second storage facility in Moss Bluff, Texas, MHP Partners’ current total storage capacity is 23 Bcf, making it one of the largest owners of high-deliverability salt cavern storage facilities in the United States. MHP also is developing high deliverability salt cavern storage facilities in Copiah County, Miss., and Tioga County, Pa.

Duke Energy Gas Transmission, the Houston-based Duke Energy business unit responsible for the company’s interstate natural gas pipeline operations, manages 12,000 miles of interstate natural gas pipelines known as Texas Eastern Transmission Corp., Algonquin Gas Transmission Co., East Tennessee Natural Gas Co., and with other partners, Maritimes & Northeast Pipeline. Together, these companies transport 8 percent of the natural gas consumed in the United States.

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 nearly $22 billion in 1999. 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.

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Contact: Gretchen D. Krueger
Phone: 713/627-4072
24 Hour Phone: 704/382-8333
Email: gdkrueger@duke-energy.com