News Releases

2000 News Releases 

Duke Energy, Williams to Purchase Gulfstream Pipeline Project from Coastal

Houston –  Subsidiaries of Duke Energy (NYSE:DUK) and Williams (NYSE:WMB) announced today their intent to jointly purchase The Coastal Corporation’s (NYSE:CGP) 100 percent interest in Gulfstream Natural Gas System, L.L.C. The purchase, expected to be finalized during the fourth quarter 2000, is subject to federal regulatory approvals and conditioned upon completion of the Coastal/El Paso Energy Corporation merger. Financial terms of the purchase were not disclosed.

"We have recognized for some time that the market will support only one new pipeline into the State of Florida," said Cuba Wadlington Jr., president and CEO, Williams’ gas pipeline group. "The market will now be able to clearly see a single, viable competing pipeline into the state."

"Our purchase of the Gulfstream project accelerates our entry into the Florida market," said Robert B. Evans, president of Duke Energy Gas Transmission. "We will work expeditiously to ensure adequate pipeline capacity by June 2002. This will help satisfy the projected 10,000 megawatt electric generation growth expected by 2007 and provide a choice among suppliers."

"The agreement to sell Gulfstream is a significant step forward in completing the requirements of the Federal Trade Commission for the close of the Coastal/El Paso Energy Corporation merger," said David A. Arledge, chairman and chief executive officer of The Coastal Corporation.

"Until the merger is complete, Coastal will continue to develop and market Gulfstream, will ensure that the project moves forward as scheduled, and will remain fully committed to its many stakeholders in Florida," said Arledge.

The $1.6 billion Gulfstream pipeline project has achieved two key milestones in the FERC approval process: preliminary determination on non-environmental issues and a favorable draft environmental impact statement. The company anticipates FERC approval in first quarter 2001. The projected in-service date is June 2002.

Gulfstream has precedent agreements with 10 large Florida utilities and power-generation facilities representing long-term commitments for the majority of its 1.1 billion cubic feet of natural gas per day capacity. Gulfstream’s proposed 744-mile pipeline is designed to primarily serve Florida utilities and power-generation facilities that plan on using high-efficiency, natural gas turbines to meet the incremental demand for electric energy.

Upon completion of the purchase, Duke Energy and Williams will proceed with the development of the Gulfstream project in lieu of the Buccaneer pipeline project, jointly being developed by Duke Energy and Williams to serve new markets in Florida.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 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.

Williams, through its subsidiaries, connects businesses to energy and communications. The company delivers innovative, reliable products and services through its extensive networks of energy-distributing pipelines and high-speed fiber-optic cables. Williams information is available at www.williams.com.

The Coastal Corporation is a Houston-based energy holding company with consolidated assets of $16 billion and subsidiary operations in natural gas transmission, storage, gathering/processing and marketing; oil and gas exploration and production; petroleum refining, marketing and distribution; chemicals; power production; and coal. Coastal and El Paso Energy Corporation (NYSE:EPG) announced on Jan. 18 a definitive agreement to merge Coastal with a subsidiary of El Paso, subject to various approvals. The merger is expected to be completed during the fourth quarter of this year. Coastal's World Wide Web site at www.coastalcorp.com provides additional information on the company.