MARITIMES & NORTHEAST PIPELINE SIGNS TWO MAJOR PRECEDENT TRANSPORTATION AGREEMENTS SUPPORTING SYSTEM EXPANSION
HALIFAX, Nova Scotia and WALTHAM, Mass. – Maritimes & Northeast Pipeline (Maritimes) today announced it has executed precedent transportation agreements (agreements) with two major international energy companies proposing to construct liquefied natural gas (LNG) import terminals in Atlantic Canada. Maritimes has signed agreements with Anadarko Petroleum Corporation to transport 813,000 MMBtu/day of natural gas from the proposed Bear Head LNG terminal near Point Tupper, Nova Scotia; and with Repsol YPF to transport 750,000 MMBtu/day of natural gas from the proposed Canaport LNG terminal near Saint John, New Brunswick.
The agreements are for transportation service to markets in Atlantic Canada and the northeastern United States. Pipeline transportation service from both the Bear Head site and the Canaport site is planned to commence in 2008.
“LNG development is a major step forward for the energy sector in Atlantic Canada and the northeastern United States,” said Doug Bloom, president of Maritimes. “Adding another source of natural gas supply will provide increased energy reliability, security and choice to consumers in both regions.”
Maritimes held an open season earlier this year to gauge market interest in transportation capacity for natural gas from LNG and other supply projects in the region. The open season responses by Anadarko and Repsol have led to transportation commitments supporting a Maritimes system expansion.
“Maritimes is very pleased to welcome Anadarko and Repsol as new customers,” said Bloom. “LNG in Atlantic Canada makes sense for several reasons. It capitalizes on the availability of an established and expandable pipeline system, provides direct access to premium and growing markets, and locates new energy infrastructure in a developing supply region.”
Maritimes would increase its capacity in both Canada and the United States to transport natural gas from the Bear Head terminal and the Canaport terminal. Maritimes will now commence work on detailed engineering design and stakeholder consultation for a system expansion, leading to regulatory applications in late 2005 or early 2006 to the National Energy Board and the Federal Energy Regulatory Commission.
Maritimes & Northeast Pipeline L.P. and Maritimes & Northeast Pipeline L.L.C. are owned by affiliates of Duke Energy (77.53 percent), Emera Inc. (12.92 percent) and Exxon Mobil Corporation (9.55 percent). Maritimes & Northeast Pipeline is headquartered in Halifax, Nova Scotia, with an additional office in Waltham, Mass. Operations centers are located in Fredericton, New Brunswick; New Glasgow, Nova Scotia; Greenland, New Hampshire; and Richmond, Brewer and Baileyville, Maine. For more information, please contact Maritimes on the Internet at: http://www.mnpp.com/.
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors could cause actual results to differ materially from those in the forward-looking statements herein are discussed in Duke Energy’s 2004 Form 10-K and other filings with the Securities and Exchange Commission.