Union Gas Sees Strong Demand for Natural Gas Storage and Transportation Services - Duke Energy

News Release
Oct. 24, 2006

Union Gas Sees Strong Demand for Natural Gas Storage and Transportation Services

CHATHAM, Ontario – Gas-fired electricity producers and other large customers have provided an enthusiastic response to the open seasons for natural gas storage and transportation capacity, recently conducted by Union Gas. This new capacity is targeted to be in-service in 2008 and Union Gas is in the process of awarding capacity to successful bidders.

In September, the company announced plans to construct up to 412,000 GJ/d of new storage deliverability capacity at its Dawn natural gas storage facility in southwestern Ontario – the largest natural gas storage facility in North America – and issued open seasons to solicit bids on this capacity and associated services.

“The market response to the storage and transmission open seasons is very strong and supports the need for additional natural gas storage and transportation infrastructure in Ontario,” said Steve Baker, vice-president, business development, Union Gas.

The open season offering was made in response to interest expressed by power producers, energy marketers and other customers for additional storage services at the Dawn Hub. Located near Sarnia, Ontario, the Dawn Hub is a key natural gas trading location with an average of more than 7.5 billion cubic feet per day of natural gas trading activity. More than 150 billion cubic feet of high deliverability storage is located at Union’s Dawn facility and 10 major pipelines interconnect there.

Union’s plan and support for storage expansion is contingent on the outcome of an OEB proceeding concerning the regulatory framework for natural gas storage in Ontario.

Union Gas is an integrated natural gas storage, transmission and distribution company serving about 1.3 million residential, commercial and industrial customers in more than 400 communities in northern, southwestern and eastern Ontario. The company also provides storage and transportation services to other utilities and energy market participants in Ontario, Quebec and the United States. Union Gas is a Duke Energy company. More information can be found at: www.uniongas.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 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. More information can be found at: www.degt.duke-energy.com.

Contact: Andrea Stass
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