News Release
Feb. 03, 2003

TEPPCO PARTNERS, L.P. ANNOUNCES AGREEMENT TO PURCHASE ADDITIONAL INTEREST IN CENTENNIAL PIPELINE LLC

HOUSTON – TEPPCO Partners, L.P., today announced that its subsidiary, TE Products Pipeline Company, Limited Partnership, entered into a definitive agreement to acquire an additional interest in Centennial Pipeline LLC from CMS Energy Corporation’s subsidiary CMS Panhandle Eastern Pipe Line Company for $20 million.

 

The closing of the transaction is expected to occur in mid-February 2003. Upon closing, TEPPCO and Marathon Ashland Petroleum LLC will each own a 50-percent ownership in Centennial. Marathon Ashland Pipe Line is the operator of Centennial Pipeline.

 

“We are pleased with the opportunity to increase our ownership interest in Centennial Pipeline," said Barry R. Pearl, president and chief executive officer of the general partner of TEPPCO. "We view Centennial as a strategic investment in our downstream business, which has already provided additional capacity that enabled TEPPCO to transport record refined product volumes in 2002. TEPPCO is confident that Centennial will provide long-term growth opportunities to the partnership as demand for Gulf Coast supplied product increases.

 

Centennial Pipeline is a 795-mile pipeline with the capacity to transport approximately 210,000 barrels per day of refined petroleum products such as gasoline and diesel fuel from the Gulf Coast to the Midwest. Shippers on the Centennial Pipeline can deliver refined petroleum products from origination points along the U.S. Gulf Coast to markets in the Midwest served by Marathon Ashland Pipe Line and the TEPPCO systems, as well as to markets further east that are served by those pipeline systems.   

           

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 petrochemical and natural gas liquid pipelines; is engaged in crude oil transportation, storage, gathering and marketing; owns and operates natural gas gathering systems; and owns a 50-percent interest in Seaway Crude Pipeline Company, an interest in Centennial Pipeline LLC, and an undivided ownership interest in the Rancho and Basin 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 Web site at www.teppco.com.

 

Contact: Kathleen A. Sauve -- Media Relations
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Email: kasauve@teppco.com
Contact: Brenda J. Peters -- Investor Relations
Phone: 713/759-3954, toll free: 800/659-0059
24 Hour Phone: n/a
Email: bjpeters@teppco.com