News Release
January 02, 2002

DUKE ENERGY INTERNATIONAL AWARDS TASMANIAN GAS PIPELINE FIVE MILE BLUFF TO PORT LATTA CONSTRUCTION CONTRACT

Duke Energy International (DEI) today announced the construction contract for the Five Mile Bluff to Port Latta portion of the Tasmanian Gas Pipeline has been awarded to McConnell Dowell Constructors (Aust) Pty Ltd.

McConnell Dowell - an international engineering and construction company headquartered in Melbourne - will start construction of the pipeline across northern Tasmania in January 2002.

The Rosevale to Bridgewater, and the Victorian onshore portions of the pipeline, will be awarded to two further construction contractors, with the announcements due in coming weeks.

Project Manager, Carl Fisher, said that there were several major companies and consortia which submitted bids for the contracts during an extensive six month tender and negotiation process.

"McConnell Dowell stood out for the Five Mile Bluff to Port Latta portion as a company with extensive experience in tackling challenging terrains, which we face along north west Tasmania," Carl said.

McConnell Dowell is a leading international pipeline construction company headquartered in Melbourne. It has built more than 10,000kms of pipelines in Australia and internationally and has built a reputation for undertaking technically difficult projects.

"We're confident that McConnell Dowell has the expertise, resources and environmental track record to meet our stringent requirements," Carl said.

McConnell Dowell's General Manager, Pipelines, Mark Twycross, said that the company was delighted to be involved in constructing the Tasmanian Gas Pipeline.

"This is a fiercely competitive business, and we're pleased to be involved with a project that promises to bring a new energy option and so much opportunity to Tasmania," Mark said.

"We're looking forward to starting work on the ground in January and will focus on establishing our workforce and sub contractors over the next few weeks."

The 714km Tasmanian Gas Pipeline will transport gas from Longford in Victoria across Bass Strait and west to Port Latta and south to the Hobart area. McConnell Dowell will build the 241km portion between Five Mile Bluff (north east of George Town) and Port Latta.

More information about McConnell Dowell can be found at www.macdow.com.au.

Duke Energy International (DEI), a wholly owned subsidiary of Duke Energy, is one of the world's leading international energy companies offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across Latin America, Europe and the Asia Pacific. DEI's Asia Pacific energy portfolio includes 2300km of natural gas pipelines in operation and under construction; 860 gross megawatts of thermal power generation in operation and under construction; and energy trading and marketing located in Australia, New Zealand and Indonesia.

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 more than US$49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. Information about the company is available on the Internet at www.duke-energy.com.au.

Contact: Tiziana Botti, Duke Energy International
Phone: Mob: 0417 709 446 / 6345 2311
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Contact: Amanda Castray, Duke Energy International
Phone: 0417 778 274 / 6216 3100
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