Duke Energy Gas Transmission said yesterday it opened two 400MMcf/d interconnections between its newly-acquired East Tennesseepipeline system and Texas Eastern Transmission (Tetco), paving theway for ETNG customers to access more diverse supplies from theGulf Coast region.

Duke bought the pipeline for $386.3 million in stock in Januaryafter El Paso was forced to sell the asset by the Federal TradeCommission as part of its merger with Sonat. At the time of thepurchase, Duke Energy Gas Transmission President Robert Evans saidthe 1,100-mile East Tennessee pipeline was a good fit with Tetcobecause it crossed its line twice and was in an area of growing gasand power demand.

East Tennessee’s two mainline systems in central Tennesseeconverge near Knoxville, extending thereafter to a point nearRoanoke, VA. The pipeline has a design capacity of 700 MMcf/d andprovides transportation and storage services to 40 localdistribution companies and 16 industrial customers in the region.It crosses Tetco at its Mt. Pleasant compressor station and againnear the town of Hartsville.

Duke also is planning a new East Tennessee expansion project,called Gateway, to accommodate expected growth in the region. Gasconsumption is growing at an annual rate exceeding 4% in theSoutheast region, which is double the national average. An openseason for the Gateway Expansion will be held through June 15,allowing shippers to submit non-binding elections for firmtransportation capacity. Service will begin Nov. 1, 2001.

“The prompt interconnection of the two systems within two andone-half months of the ETNG acquisition is indicative of DukeEnergy’s focus on the East Tennessee market,” said Robert Evans,president of Duke Energy Gas Transmission. “The Gateway Expansionprovides shippers an excellent opportunity to take advantage of thenew Texas Eastern interconnects just completed with ETNG.”

The ETNG system is a supplier to customers in eastern andcentral Tennessee, southwest Virginia, northern Georgia andnorthern Alabama. The system also includes a 1.2 Bcf/d liquefiednatural gas storage facility near Knoxville.

Rocco Canonica

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