Released By KeySpan Corporation News Release
Dec. 13, 2002

KEYSPAN ACQUIRES ALGONQUIN LNG

Acquisition Strengthens KeySpan's Position in Northeast

 

BROOKLYN, NY and BOSTON, MA  – KeySpan LNG LLC, a wholly-owned subsidiary of KeySpan Energy Development Corporation (KEDC), today acquired Algonquin LNG, LP, the owner and operator of a 600,000 barrel FERC-regulated liquefied natural gas (LNG) storage and receiving facility in Providence, Rhode Island, from Duke Energy.

 

The purchase price was $28 million.

 

"The purchase of Algonquin LNG complements KeySpan's existing gas-distribution business and will make a significant contribution to our earnings," said Robert B. Catell, Chairman and CEO of KeySpan Corporation (NYSE:KSE), the parent company of KEDC.  "The Providence facility plays a critical role in meeting peak-day gas supply needs in the region.  LNG is a key component to supply mix in the NorthEast.  This acquisition builds on KeySpan's strategy of expanding our core businesses and strengthens our ability to meet the growing gas demand in the Northeastern United States.”

 

“As an active manager of a portfolio of energy assets, Duke Energy continually looks at our businesses and assets with an eye on maximizing shareholder value,” said Thomas C. O’Connor, President and Chief Executive Officer of Duke Energy Gas Transmission.  “Portfolio management is one of the ways in which we optimize the value of our energy businesses. This transaction allows Duke Energy and KeySpan to continue to build on our strong relationship.

 

Algonquin LNG began service in 1973 and employs 11 people.   Major upgrades to the facility were completed in 2000 and the facility is fully contracted under long-term arrangements with three northeast gas distribution companies.  Its largest customer is KeySpan Energy Delivery-New England, a subsidiary of KeySpan Corporation, which contracts for more than half of the facility’s storage capacity.

 

Duke Energy Gas Transmission is a North American leader in developing energy infrastructure and connecting major natural gas supply basins to growing markets. The company’s natural gas operations include more than 18,900 miles of interstate transmission pipeline and 250 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at www.degt.duke-energy.com.

 

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 500 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.

 

KEDC is a wholly-owned subsidiary of KeySpan Corporation (NYSE: KSE), the largest distributor of natural gas in the Northeast, with 2.5 million gas customers and more than 12,000 employees. KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island's electric system under contract with the Long Island Power Authority for its 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan manages a portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, a full-service energy company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy company for business customers. KeySpan also has strategic investments in natural-gas exploration and production, pipeline transportation, distribution and storage, as well as Canadian gas processing and fiber-optic cable. For more information about the company, visit KeySpan's Web site at: http://www.keyspanenergy.com.

 

Contact: Andrea Staub -- Media Relations, Brooklyn, N.Y.
Phone: 718/403-2503
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Contact: Carmen Fields -- Media Relations, Boston, Mass.
Phone: 617/723-5512, ext. 2239
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