News Release
Oct. 01, 2001

TEPPCO CLOSES $360 MILLION ACQUISITION OF JONAH GAS GATHERING

HOUSTON – TEPPCO Partners, L.P. (NYSE:TPP) closed its previously announced $360 million acquisition of the Jonah Gas Gathering Company. The acquisition signals TEPPCO’s entry into the natural gas gathering business and provides organic growth opportunities.

The 300-mile Jonah system gathers and transports natural gas from the Green River Basin in southwestern Wyoming, one of the most prolific and active basins in the United States. Gas transported on the system is processed by others and delivered to several interstate pipeline systems that provide access to a number of West Coast, Rocky Mountain and Midwest markets.

The Jonah system will be commercially managed and operated by Duke Energy Field Services, LP (DEFS), one of the nation’s leading natural gas gathering and processing companies.

As part of the transaction, TEPPCO assumed approximately $25 million in remaining costs for a 50-mile expansion project currently under construction. The expansion is scheduled for completion in early 2002 and will increase capacity from 450 MMcf/day to 730 MMcf/day.

SunTrust Bank arranged financing for the transaction.

TEPPCO Partners, L.P. is a publicly traded master limited partnership, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates natural gas liquid pipelines; is engaged in crude oil transportation, storage, gathering and marketing; owns a 50-percent interest in Seaway Crude Pipeline Company and an undivided ownership interest in the Rancho and Basin Pipelines; and owns and operates natural gas gathering pipelines. Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, is the general partner of TEPPCO Partners, L.P. For more information, visit TEPPCO’s website at www.teppco.com.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P. filings with the Securities and Exchange Commission.

Contact: Brenda J. Peters, Investor Relations
Phone: 713/759-3954
24 Hour Phone: 704/382-8333
Email: bpeters@TEPPCO.com
Contact: Kathleen A. Sauve, Media Relations
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Email: ksauve@TEPPCO.com