CenterPoint Energy Gas Transmission and Duke Energy Gas Transmission Sign Memorandum of Understanding Regarding a Major New Southeast Pipeline
HOUSTON -- CenterPoint Energy Gas Transmission Company, an indirect, wholly owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc. and Duke Energy Gas Transmission, a subsidiary of Duke Energy Corp. announced today that they have executed a Memorandum of Understanding (MOU) to cooperate in the evaluation, marketing and development of a proposed pipeline connecting CEGT's Perryville Hub to DEGT's partially-owned affiliate pipeline, Gulfstream Natural Gas System. To assess the market interest in the proposed pipeline, an open season will be held in early December.
The capacity of the potential new pipeline would be between 700 million cubic feet per day and 1.0 billion cubic feet per day and would connect CEGT's Perryville Hub in northeast Louisiana to an interconnect with Gulfstream. The pipeline would be approximately 250 miles in length and could be in service as early as the Spring of 2008.
"We are pleased to be able to work with DEGT on a project of this magnitude. The new pipeline would provide our Perryville Hub customers access to additional markets," said Cy Zebot, senior vice president and chief commercial officer of CEGT. "In addition to our current customers, it would provide additional markets for Barnett Shale and Bossier Sand gas producers taking capacity on our recently announced Carthage to Perryville project. We believe the mutual interest of CEGT and DEGT expressed by the MOU is evidence of the superior value proposition represented by our highly liquid Perryville Hub, where numerous sources of supply can already access markets in the Midwest and Northeast, and now possibly in the Southeast, particularly Florida."
"A new pipeline system would provide customers with a competitive alternative to access growing, reliable onshore supply sources. It would also provide an important link for natural gas supply to reach key Northeast markets in winter, and rapidly-growing Southeast markets in summer," said Guy Buckley, DEGT's group vice president for US Southeast transmission. "We are excited to join CenterPoint Energy in this effort to ensure the energy needs of these growing markets are met."
CenterPoint Energy, Inc. headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution and sales, interstate pipeline and gathering operations. The company serves nearly five million metered customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $16 billion. With more than 9,000 employees, CenterPoint Energy and its predecessor companies have been in the business for more than 130 years. For more information, visit the Web site at http://www.CenterPointEnergy.com
Duke Energy Gas Transmission is a North American leader in developing natural gas energy infrastructure, connecting major natural gas supply sources to growing markets. Based in Houston, Texas, the company's assets and operations include more than 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in Canada and the United States along with significant gathering, processing, distribution and natural gas liquids operations that are among the largest in Canada. More information on DEGT can be found at: http://www.degt.duke-energy.com.
This news release 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. The statements in this news release regarding future events and other statements that are not historical facts are forward-looking statements. Although CenterPoint Energy and Duke Energy believe that their respective expectations of future events as set forth in this release are based on reasonable assumptions, neither CenterPoint Energy nor Duke Energy can give assurance that anticipated results will be achieved or that anticipated events will occur. Actual events and results may differ materially from those projected. Important factors that could cause actual results to differ materially from those in the forward-looking statements of CenterPoint Energy herein are discussed in CenterPoint Energy's and its subsidiaries Form 10-Ks for the period ended Dec. 31, 2004, and Form 10-Qs for the periods ended March 31, June 30, and Sept. 30, 2005, and other filings with the Securities and Exchange Commission. Important factors could cause actual results to differ materially from those in the forward-looking statements of Duke Energy herein are discussed in Duke Energy's Form 10-Q for the quarter ended Sept. 30, 2005, and other filings with the Securities and Exchange Commission.