News Release
January 04, 2002

DUKE ENERGY INTERNATIONAL AWARDS TASMANIAN GAS PIPELINE ROSEVALE TO BRIDGEWATER CONSTRUCTION CONTRACT

Duke Energy International (DEI) today announced that pipeline and civil engineering construction company, Nacap Australia Pty Ltd, has been awarded the construction contract for the Rosevale to Bridgewater (Stage 3) portion of the Tasmanian Gas Pipeline (TGP).

Nacap Australia (formerly Minson Nacap Pty Ltd) is expected to begin work on the TGP's southern pipeline extension in late January. Work is expected to be completed by mid-2002, with natural gas flowing into the state after extensive testing of the pipe has been undertaken by DEI.

TGP Project Manager Carl Fisher said that DEI was looking forward to working with Nacap to construct the 150mm diameter pipeline which stretches approximately 168km from Rosevale (west of Launceston) to Bridgewater.

"Nacap has extensive experience in constructing cross-country pipelines and related facilities. They have built more than 2,600km of pipes around Australia, and have earnt a reputation for excellence," Carl said.

Nacap Australia will be responsible for recruiting a labour force, as well as selecting local sub contractors, to assist with construction. Nacap Australia is a member of the Nacap Asia Pacific group of companies. More information about Nacap Australia can be found at www.nacap.com.au.

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.

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. Information about DEI Asia Pacific is available on the Internet at www.duke-energy.com.au.

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 Duke Energy is available on the Internet at www.duke-energy.com.

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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