Texas Eastern Transmission Proposes Market Area Crossing Project To Move Western Natural Gas Supplies to the Northeast - Duke Energy

News Release
June 26, 2006

Texas Eastern Transmission Proposes Market Area Crossing Project To Move Western Natural Gas Supplies to the Northeast

Open Season Scheduled June 26 to July 31, 2006

HOUSTON – Texas Eastern Transmission, a unit of Duke Energy Gas Transmission (DEGT), will conduct an open season to determine interest in moving natural gas from emerging western North American supply basins to premium markets in the Northeast and Mid-Atlantic regions.

The Texas Eastern Market Area Crossing (TEMAX) project will allow shippers to receive new natural gas supplies from western supply basins at various points along the Texas Eastern system through enhancement of the existing mainline infrastructure and incremental expansion, if needed. Shippers also will be able to take advantage of recently announced mid-continent pipeline projects, including the Mid-Continent Crossing (MCX), DEGT’s project with CenterPoint Energy Gas Transmission.

Natural gas from the West is anticipated to enter the Texas Eastern system for delivery to Northeast and Mid-Atlantic markets at various locations including Bald Knob, Ark., Clarington, Ohio, and Oakford/Delmont, Pa.

The project design will incorporate the use of Texas Eastern’s existing facilities and rights of way when possible, providing a direct connection to markets served by Texas Eastern’s customers.

“Texas Eastern’s proximity to new pipeline projects connected to western supply basins provides our customers with a unique opportunity to take advantage of new supply sources,” said Greg Rizzo, group vice president for Northeast transmission and storage. “The proposed Market Area Crossing project will provide shippers with diverse supply options to serve existing and incremental markets in the Northeast.  This project is consistent with other pipeline projects DEGT is committed to in the Northeast, such as the proposed Excelerate Northeast Gateway, Repsol Canaport and BP Crown Landing LNG facilities.”

Requests made by shippers during Texas Eastern’s recently completed Lebanon East Expansion open season will be merged with the results of this open season to determine the most cost-effective project that meets all shipper needs.

Advantages of the proposed TEMAX project include:

  • Competitive rates and prime access to the high-growth Mid-Atlantic and Northeast markets
  • Valuable additional capacity with minimal environmental impacts
  • Access to emerging high value supply sources from western North America
  • Flexible in-service dates

The non-binding open season will be held June 26 to July 31, 2006. An in-service date as early as Nov. 1, 2008, is anticipated. Interested shippers should contact Rob Hansen, project director, at 617-560-1549 or RNHansen@duke-energy.com.

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For more than a half-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 more than 18,500 miles of transmission pipeline and more than 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. 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
e-mail: gdkrueger@duke-energy.com