News Release
Sept. 03, 2002

DUKE ENERGY COMPLETES AUSTRALIAN PIPELINE

HOUSTON – Duke Energy business unit Duke Energy International (DEI) today inaugurated the Tasmanian Gas Pipeline, Australia’s longest sub-sea pipeline project.  The newly completed pipeline brings natural gas to the island state of Tasmania and connects it to Australia’s growing natural gas network.

 

The US $246 million (A$440 million) project includes 455 miles (732 kilometers) of sub-sea and underground pipeline and the conversion of the Bell Bay Power Station on Tasmania to natural gas.  The project will provide a much-needed energy alternative for Australia’s last state to receive natural gas.

 

DEI President and Chief Executive Officer Richard McGee said today’s celebrations marked an important international milestone for DEI.

 

“The Tasmanian Gas Pipeline delivers on a promise DEI made just a few short years ago to bring a new, competitive and reliable energy supply to Tasmania to fuel industrial growth and spur long-term employment opportunities in the state,” McGee said. “In four years, DEI has taken the project from pipe dream to construction reality.  We’ve invested in expanding Australia’s energy market, creating a new market in Tasmania and enhancing trading opportunities nationally.

 

“While natural gas will be sold to homes and businesses in Tasmania’s major population centers by a retail distributor, it was the support of the underpinning industrial customers which made it possible for DEI to consider such a large investment,” he said.

 

At the launch event, McGee announced the start of construction of the VicHub project, a DEI initiative which will enable gas to flow freely between Victoria, New South Wales, and Tasmania through construction of a link between the Eastern Gas Pipeline, Tasmanian Gas Pipeline and the GasNet pipeline system.

 

“VicHub is an exciting project in the Australian energy industry as it offers new and existing gas retailers greater diversity of supply while providing an effective gas-trading platform. It enables gas to be bought and sold between states, leading to a more efficient market and greater security of supply for consumers. It will also inject additional gas into Victoria during the peak winter demand periods providing price and curtailment protection,” he said.

 

Tasmania Natural Gas Project

 

Fast Facts

·         US $246 million (A$440 million) project through Victoria, Bass Strait and Tasmania

·         Links Tasmania to the Australian mainland gas network via connection to the DEI Eastern Gas Pipeline at Longford

·         188 miles (302km) offshore from the Australian coast to Tasmania

·         267 miles (430km) onshore

·         43,300 tons of steel pipe

·         50,000 pieces of pipe

·         Conversion of 120-megawatt generating unit from oil to gas

 

DEI, a subsidiary of Duke Energy, builds, through development or acquisition, regional energy businesses that include natural gas and power facilities and energy trading and marketing operations. DEI’s energy portfolio includes over 6,200 megawatts of hydroelectric and thermal generation, and nearly 2,400 miles (3,850 km) of gas pipeline in Europe, Latin America and Asia Pacific.

 

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 100 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.

 

Contact: Deb Witmer
Phone: 713/627-5848
24 Hour Phone: 704/382-8333
Email: dfwitmer@duke-energy.com