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DEGT Receives Strong Response from Lebanon East Open Season

Duke Energy Gas Transmission (DEGT) said last week that a "robust and diverse response" to its recently completed Lebanon East open season has confirmed that additional capacity is necessary to better serve Ohio and Pennsylvania markets. During the open season, shippers expressed interest in more than 1.2 Bcf/d through nonbinding firm transportation agreements. The solicitation ran from Dec. 1, 2005 to March 1, 2006.

DEGT said the Lebanon East open season gave marketplace participants the ability to indicate where additional pipeline capacity is needed by nominating incremental expansion volumes from the Lebanon Hub in western Ohio or other points along DEGT's existing Texas Eastern Transmission mainline in Ohio and Pennsylvania. The company's Texas Eastern Transmission system spans 9,040 miles from the Gulf Coast to the Northeast with a capacity of 6.2 Bcf/d.

"The open season response confirmed that Lebanon is considered a very liquid point by shippers, one that will grow in liquidity over time as capacity is added and supply options increase," said Greg Rizzo, DEGT group vice president. "We are very pleased with the nominated volumes and the length of service terms expressed - most of which were for 10 years."

DEGT said shippers expressed interest in expansion capacity that would begin service in November 2008. Shippers sought capacity to transport gas sourced from Canada, the Rockies, and regional storage fields.

"These expressions of interest are an important first step in the continued development of expanded energy infrastructure in our Market Zone 2 and the Northeast region," Rizzo said. "Clearly the signal here is a strong continuing demand for additional services and future infrastructure."

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