News Release
June 19, 2001


HALIFAX, NOVA SCOTIA and BOSTON -- Maritimes & Northeast Pipeline (Maritimes) announced today the signing of agreements with PanCanadian Petroleum Limited to transport up to approximately 400 million cubic feet per day of natural gas from the PanCanadian-owned Deep Panuke project offshore Nova Scotia to markets in Atlantic Canada and New England.

Maritimes proposes to expand its mainline in order to transport the PanCanadian volumes. The expansion of the Maritimes system represents an approximate $500 million Cdn ($330 million United States) investment. The expansion is scheduled to be completed in late 2004 or early 2005 to meet the PanCanadian planned production target of first quarter 2005.

"The signing of this contract confirms the first expansion of the Maritimes system in Canada," said Michael Phelps, chairman and chief executive officer of Westcoast Energy Inc., the lead partner in the Canadian portion of Maritimes. "With this expansion, we are well on the way to our goal of doubling system capacity to 1.2 billion cubic feet per day by 2005 and to 2 billion cubic feet per day by 2010."

"These arrangements demonstrate the importance of an effective transportation system for the continued development of this region’s natural gas resources," said Phillip Knoll, president of Maritimes & Northeast Pipeline Limited Partnership. "This project will see our transportation rates dropping significantly, enhancing the competitiveness of Scotian Shelf natural gas in relation to other supply basins in North America."

"The Maritimes system was designed to meet the anticipated increase in natural gas production in Eastern Canada," said Robert Evans, chairman of Maritimes & Northeast Pipeline, L.L.C. "We can readily expand our facilities to transport new supplies of gas now and in the future. As gas volumes increase on Maritimes, shippers benefit from an even more economical, efficient and flexible delivery infrastructure."

"Maritimes continues to be the preferred route for moving offshore Eastern Canadian gas to market and is well supported by shipper commitments," said Tom O’Connor, president M&N Management Company, the managing member of Maritimes. "Well advanced are compression additions at existing stations and the planned extension of the Maritimes system to directly connect with the Algonquin Gas Transmission system which is of great interest to our shippers and provides tremendous market access and reliability for the entire Northeast pipeline grid."

Maritimes will now prepare applications to the National Energy Board and the Federal Energy Regulatory Commission for project review and approval.

The project sponsors of Maritimes & Northeast Pipeline are Westcoast Energy Inc. (37.5 percent); Duke Energy (37.5 percent); ExxonMobil (12.5 percent); and Emera Inc. (12.5 percent). Maritimes & Northeast Pipeline has headquarters in Halifax, Nova Scotia, and Boston.

Contact: Stephen Rankin, Maritimes & Northeast Pipeline L.P. (Canada)
Phone: 902/425-293
24 Hour Phone: n/a
Contact: Marylee Hanley
Phone: 617/560-1573
24 Hour Phone: 704/382-8333