News Release
August 03, 2004

DUKE ENERGY GAS TRANSMISSION ANNOUNCES COMPREHENSIVE OPEN SEASON OFFERING FOR EXPANSION INFRASTRUCTURE

HOUSTON — Duke Energy Gas Transmission (DEGT) announced today that three of its operating units will simultaneously conduct open seasons to address demand-driven transportation and storage infrastructure expansion opportunities in the eastern United States and Canada.

DEGT’s eastern North America open season is designed for shippers interested in transporting natural gas on any one or a combination of:

  • Algonquin Gas Transmission
  • Texas Eastern Transmission, or
  • Union Gas Limited

Through its Algonquin Gas, Texas Eastern and Union Gas operating units, DEGT’s infrastructure provides options, flexibility and critical access to major existing and new supply sources – including liquefied natural gas (LNG), storage services and high-growth markets across the North American continent.

“Each of the operating units involved in the open season have unique offerings in their own right, and this comprehensive open season allows the marketplace to choose how it wants to pursue the various options available,” said Greg Rizzo, DEGT group vice president. “LNG imports will play an increasing role in meeting North American energy demand, and DEGT is well positioned to deliver this important supply to the market.”

Solid Reliability Record

Several DEGT pipeline systems have established all-time peak throughput days in recent years.

“We’ve been able to meet and exceed our customers’ expectations when temperatures have turned frigid,” Rizzo said. “Our reliability record has been very solid.” 

“Storage facilities are a central component in providing reliability of natural gas supply, and investments in storage infrastructure can have a significant impact in reducing price volatility. Union Gas’ storage at Dawn Hub – located in Ontario – plays a key role in meeting the reliability needs of markets in eastern Canada and the United States,” said Phil Knoll, DEGT group vice president.

In addition to reliability, performance and meeting customers’ needs, expanding the system in a cost-effective manner has been a DEGT priority. In 2003, DEGT added about 850 million cubic feet per day of natural gas pipeline capacity to the energy grid.

Algonquin Open Season

The Algonquin proposal will expand capacity to meet the needs of the growing New England market by matching existing and new supply interconnects to key markets.

As a result of recent expansion projects, the Algonquin system has increased access to eastern Canada, western Canada, traditional United States and new LNG supplies. Algonquin offers a unique opportunity to transport gas from various supply points with the addition of minimal new pipeline facilities. 

The Algonquin open season is geared towards shippers who need to move gas from any traditional pipeline interconnect or supply point on Algonquin, and from new and proposed supply projects connecting to Algonquin, including the Texas Eastern open season project. 

TexasEastern Open Season

Texas Eastern has historically offered its shippers low-cost access to abundant, competitively priced supplies of natural gas supply and storage services. This access has been recently enhanced by several newly proposed upstream projects to deliver additional supplies, storage and LNG services into the Texas Eastern system. 

The current open season enables interested parties access to new supply sources and services to move gas from supply areas such as the Gulf Coast and Chicago/Lebanon Lateral to the mid-Atlantic and northeast regions with minimal new pipeline facilities.

Union Gas Open Season

The open season includes a proposal to expand Union Gas’ storage and transmission capacity in order to meet market demands in Ontario, Quebec, and the United States’ northeast region, from Dawn to Kirkwall, Parkway and points east.

“Because of significant interconnects and storage capabilities, the Dawn Hub is a gateway to North American supply, and offers interested parties supply diversity and the ability to ship to a wide array of downstream premium markets,” said Knoll. “Through Union Gas, shippers can acquire the physical asset positions to meet changing market demands and access multiple supply options with exceptional liquidity and price transparency.”

Open Season Contacts

The open season runs from Aug. 3 to Sept. 30. Those wishing to submit requests for service should contact the representatives listed below.

Algonquin
Tina Faraca
617/560-1462
tvfaraca@duke-energy.com

TexasEastern
Bob Riga
617/560-1436
rgriga@duke-energy.com

Union Gas
Carol Cameron
519/436-5258
ccameron@uniongas.com

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 17,500 miles of transmission pipeline and about 250 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at:  http://www.duke-energy.com/businesses/companies/degt.asp

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in North America and selected international markets. In 2004, the company celebrates a century of service with the 100th anniversary of its electric utility Duke Power. Headquartered in Charlotte, N.C., Duke Energy 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.

Contact: Danny Gibbs
Phone: 713/627-4060
24-Hour Phone: 704/382-8333
e-mail: dpgibbs@duke-energy.com