Duke Energy Gas Transmission Plans Major Expansions of Its Market Hub Partners' Salt Cavern Storage Facilities - Duke Energy

News Release
Dec. 6, 2006

Duke Energy Gas Transmission Plans Major Expansions of Its Market Hub Partners' Salt Cavern Storage Facilities

Fourth Cavern Planned for Key Natural Gas Storage Facility at Egan, La.

HOUSTON – Duke Energy Gas Transmission plans to expand its Gulf Coast salt cavern storage facilities by more than 35 billion cubic feet over the next six years in response to growing market demand for the flexibility and reliability of high deliverability natural gas storage services.

The three facilities – strategically located between premium markets and growing supplies, including liquefied natural gas – are located at Egan in Acadia Parish, La.; Moss Bluff in Liberty County, Texas; and the proposed storage facility in Copiah County, Miss. When all projects currently planned are completed by 2012, the three facilities will have a total working capacity of about 70 Bcf.

“The excellent response we received to our Market Hub Partners open season earlier this year indicates that salt cavern storage for natural gas will continue to play an important role in balancing supply and demand, particularly for the growing Southeast and Northeast United States markets,” said Mark Fiedorek, vice president, asset optimization and storage development. “These strategically located facilities across the Gulf Coast provide our customers with attractive supply and market access and customized services to meet their growing natural gas marketing requirements.”

Of particular interest to shippers is DEGT’s storage assets at Egan, Fiedorek noted.

“Our recent enhancements, along with anticipated interconnects with LNG supply headers, positions Egan as the key storage provider in the LNG market,” Fiedorek said. “We plan to file an application with the Federal Energy Regulatory Commission in early 2007 to increase the capacity of the Egan facility from 24 Bcf at the end of our current expansion to 32 Bcf through the development of a fourth cavern at this site.”

Other expansion plans for DEGT’s storage assets include adding 8 Bcf at the Moss Bluff facility by 2011, and seeking approval from FERC to increase the already certificated Copiah facility from 3.3 Bcf to 15 Bcf by 2012.

The three Market Hub Partners facilities are assets of DEGT, which announced earlier this year that it will separate from Duke Energy, along with Duke Energy’s 50 percent ownership in Duke Energy Field Services (to be called DCP Midstream). The two entities will become a pure play company known as Spectra Energy Corp that is expected to begin trading on the New York Stock Exchange as an independent company on Jan. 2, 2007.

Below is a summary of each facility, including current and future expansion possibilities:

Egan Hub (Total capacity:  32 Bcf by 2010)

  • Current working capacity: 20 Bcf
  • Projects currently under way: The addition of nearly 23,000 horsepower, anticipated to be in service by the third quarter of 2007, will increase the cycling capacity of the facility. Completion of the third cavern is planned for the third quarter of 2008.
  • Plans: Anticipate filing an application with FERC in the first quarter of 2007to develop a fourth cavern that would increase the capacity from 24 to 32 Bcf
  • Features: Eight interconnects that include most of the major interstate pipelines with access to Gulf Coast, Northeast, Midwest and Southeast markets
  • Access to competitively priced supply options with anticipated interconnects to major liquefied natural gas supply headers

Moss Bluff (Total capacity: 23 Bcf by 2011)

  • Current working capacity:  15 Bcf
  • Plans: Adding 8 Bcf by 2011
  • Features: Interconnects with four intrastate and two interstate pipelines
  • Access to Midwest and Northeast U.S., Texas intrastate and Houston Ship Channel markets

Copiah Storage (Total capacity:  15 Bcf by 2012)

  • Proposed facility: Currently FERC certificated as a 3.3 Bcf single cavern facility
  • Plans: Anticipate seeking FERC approval early in 2007 to expand the scope of this project to a 15 Bcf,  two-cavern facility for in-service in 2009
  • Features: Strategically located between emerging Perryville Hub and Gulf Coast supplies and growing markets in Southeast and Northeast United States
  • Proposed direct connection with Texas Eastern Transmission and the proposed DEGT/CenterPoint Energy Gas Transmission Southeast Supply Header

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For close to a century, DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connects natural gas supply sources to premium markets.

Based in Houston, Texas, the company's assets include about 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in the U.S. and Canada. DEGT also has natural gas gathering, processing and distribution assets and natural gas liquids operations that are among the largest in Canada.  In June, Duke Energy announced a plan to separate its electric and gas businesses. DEGT, along with Duke Energy’s 50 percent ownership in Duke Energy Field Services, expects to become a stand-alone, publicly traded company known as Spectra Energy Corp. Spectra Energy is expected to begin trading on the New York Stock Exchange as an independent company on Jan. 2, 2007. More information can be found at: www.degt.duke-energy.com.

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 the Americas. 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: Gretchen Krueger
Phone: 713-627-4072
24-Hour Phone: 704-382-8333