Maritimes & Northeast Pipeline Connects Vital New LNG Supply - Duke Energy

News Release
May 16, 2006

Maritimes & Northeast Pipeline Connects Vital New LNG Supply

Growing U.S. Northeast and Atlantic Canada markets to benefit from new energy infrastructure

HALIFAX, Nova Scotia and WALTHAM, Mass. – In an application to be filed today with the Federal Energy Regulatory Commission, Maritimes & Northeast Pipeline (Maritimes) announced plans to expand its U.S. pipeline system to connect a significant and vital new source of natural gas to serve growing markets.

The proposed Maritimes Phase IV project will add facilities to transport much needed natural gas supply from the proposed CanaportTM LNG import terminal in Saint John, New Brunswick, to growing markets in Atlantic Canada and the Northeastern United States. CanaportTM LNG is a joint venture of Repsol YPF and Irving Oil Limited. Repsol YPF has executed an agreement with Maritimes to transport re-gasified LNG in the United States on its existing pipeline system.

“The CanaportTM LNG re-gasification terminal in Saint John offers a new reliable source of natural gas and increases energy supply diversity and security for the region. This new supply source will help minimize the impact on consumers of disruptions brought on by events like last year’s hurricanes,” said Doug Bloom, president, Maritimes & Northeast Pipeline. “We have been a full partner in developing the transportation system to link this new supply to energy-hungry markets. CanaportTM LNG could be the first LNG re-gasification terminal on the Atlantic coast to be constructed in decades and is a welcome development for energy consumers from New Brunswick to Maine, and New Hampshire to Massachusetts.”

The re-gasified LNG will be transported in Canada from the CanaportTM LNG Terminal on the proposed Brunswick Pipeline, to an interconnection with the Maritimes system at the U.S.-Canada border. Earlier today, Emera Inc. announced plans for its full ownership investment in the proposed Brunswick Pipeline. An affiliate of Duke Energy will permit and construct the Brunswick Pipeline.

“Demand for LNG is strong throughout the northeast region. The arrangements to expand Maritimes & Northeast Pipeline, along with agreements with Emera, complete the full value chain arrangements and will enable our project to be first to market with secure natural gas supplies,” said Phil Ribbeck Director, LNG North America, for Repsol YPF. “We are happy to be working with strong regional partners such as Irving, Maritimes & Northeast Pipeline and Emera. We have all our required permits and are moving forward with the LNG terminal construction.”

The Proposed Maritimes U.S. Expansion Facilities
The Phase IV Project will increase Maritimes’ capacity by approximately 418,000 dekatherms per day through a combination of:

  • the addition of five compressor stations in Maine, 
  • approximately 1.7 miles of 30-inch pipeline in Maine and
  • modifications to existing U.S. facilities.

Construction of the proposed expansion facilities is anticipated to begin in June 2007, with an expected in-service date of Nov. 1, 2008.

“This expansion will provide Maritimes’ shippers with a significant rate reduction, and will offer customers in Atlantic Canada, Eastern Canada and the U.S. Northeast the real opportunity to secure a safe, reliable, efficient and economic supply of a quality,clean-burning energy source. It expands our energy options and improves our energy security,” concluded Bloom.

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/.

Contact: Media Contact (Maritimes U.S.) -- Marylee Hanley
Phone: 617/560-1573
24-Hour Phone: 704/382-8333
e-mail: mhanley@duke-energy.com
Contact: Media Contact (Maritimes Canada) -- Steve Rankin
Phone: 902/425-4293
24-Hour Phone: 704/382-8333
e-mail: srankin@duke-energy.com