News Release
October 05, 2004

DUKE ENERGY GAS TRANSMISSION: COMPANY RECEIVES SIGNIFICANT MARKET INTEREST IN EASTERN NORTH AMERICA OPEN SEASON

HOUSTON -- Duke Energy Gas Transmission (DEGT) today reported a strong response to its recent open season, representing significant potential shipper interest in new natural gas transportation and storage capacity.

Three of DEGT’s operating units simultaneously conducted open seasons from Aug. 3 – Sept. 30 to gauge market interest in infrastructure expansion needs in eastern North America.

“The marketplace’s response to DEGT’s unique combination of market accessibility, storage capabilities and coastal access for liquefied natural gas (LNG) was very good,” said Tom O’Connor, DEGT president. “We are pleased with both the transportation and storage capacity volumes nominated and the length of service terms expressed – most of which were for 10 or more years.”

The eastern North America open season was designed to allow marketplace participants to choose how they wanted to pursue the various options available. Shippers expressed non-binding interest in both supply and demand-driven infrastructure expansion opportunities in the eastern United States and Canada with various in-service dates beginning in 2005 on any one or a combination of:

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

Additionally, there was interest in obtaining existing pipeline capacity as early as 2004.

On the Texas Eastern and Algonquin pipelines, shippers expressed interest in more than 2 billion cubic feet per day (Bcf/d) and 1 Bcf/d of expansion capacity on those systems respectively.

Union Gas transportation shipper interest amounted to more than 3 Bcf/d and Union Gas’ storage facilities at the Dawn market hub also drew more than 50 Bcf of capacity expansion interest. “These expressions of interest are an important first step in the development of expanded energy infrastructure in Ontario as we capitalize on the Dawn hub’s access to North American gas supply,” O’Connor said.  

“While typically not all nominations submitted during a non-binding open season result in the execution of firm contracts, clearly the signal here is a strong continuing demand for additional services and future infrastructure in this region,” he said.

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