Saltville Gas Storage Company Begins Operations in Southwest Virginia

NUI Corporation/Duke Energy Facility Fully Contracted for 2003-2004 Winter

Heating Season



Aug 27, 2003, 01:00 ET from Duke Energy

    HOUSTON and BEDMINSTER, N.J., Aug. 27 /PRNewswire-FirstCall/ -- Saltville
 Gas Storage Company, a high deliverability natural gas storage facility in
 southwest Virginia, has begun commercial operation. Companies that have
 contracted for storage services at the underground salt cavern facility are
 now injecting natural gas in preparation for this winter's heating season.
     The facility, being jointly developed by NUI Corporation's Virginia Gas
 Company and Duke Energy Gas Transmission (DEGT), is fully contracted this
 season.  The field is expected to yield about 1 billion cubic feet (Bcf) of
 working gas capacity in its inaugural winter.  Plans are to continue to expand
 the facility's storage capacity at a rate of about 1 Bcf a year, reaching more
 than 6 Bcf by 2007 and eventually expanding to 12 Bcf in the next phase.
     "NUI and DEGT have worked closely to move forward with our development of
 Saltville Gas Storage, a facility that will play an increasingly vital role in
 supplying needed natural gas to energy providers in the region," said Mark
 Abramovic, senior vice president, chief operating officer and chief financial
 officer of NUI.  "The high-withdrawal and quick-refill capabilities of the
 facility will provide a substantial natural gas peaking supply source for the
 southeast region of the United States."
     "More than half of the working gas initially stored at the Saltville
 facility will be used to serve customers transporting natural gas through the
 Patriot Extension, DEGT's new 95-mile pipeline currently under construction
 from the company's existing East Tennessee Natural Gas (ETNG) system," said
 Pat Whitty, ETNG vice president of marketing.
     "The November in-service of Patriot will allow customers throughout the
 southeast United States -- particularly in North Carolina, Virginia and
 Tennessee -- to receive benefits from this new significant supply source,"
 Whitty added.
     Both NUI and DEGT maintain that the lack of peaking storage in the region
 has created a strong interest in Saltville Gas Storage and discussions
 continue with additional customers for the 2004 winter heating season.
     Saltville Gas Storage interconnects with Virginia Gas Pipeline Co. and
 ETNG.  At full phase one projected capacity, Saltville will be capable of
 delivering up to 500 million cubic feet of natural gas per day to the
 surrounding region.  NUI already operates an existing 1.1 Bcf high
 deliverability storage facility at Saltville, which also is fully contracted
 for the coming heating season.
     NUI Corporation, based in Bedminster, NJ, is a diversified energy company
 that operates natural gas utilities, as well as businesses involved in natural
 gas storage and pipeline activities and wholesale energy portfolio and risk
 management.  NUI Utilities' companies include Elizabethtown Gas Company in New
 Jersey, City Gas Company of Florida and Elkton Gas Company in Maryland. Visit
 our Web site at www.nui.com.
     Duke Energy Gas Transmission is a North American leader in developing
 energy infrastructure and connecting major natural gas supply basins to
 growing markets. The company's natural gas operations include more than 18,000
 miles of interstate transmission pipeline and 250 billion cubic feet of
 storage capacity in Canada and the United States. More information on DEGT can
 be found at: http://www.duke-energy.com/businesses/companies/degt.asp.
     Duke Energy is a diversified multinational energy company with an
 integrated network of energy assets and expertise.  The company manages a
 dynamic portfolio of natural gas and electric supply, delivery and trading
 businesses -- meeting the energy needs of customers throughout North America
 and in key markets around the world.  Duke Energy, headquartered in Charlotte,
 N.C., is a Fortune 500 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.
 
     CONTACT:    Chris Reardon, NUI Corp.
     Phone:      908/719-4224
     e-mail:     creardon@nui.com
 
     CONTACT:    Gretchen Krueger, Duke Energy
     Phone:      713/627-4072
     24-Hour:    704/382-8333
     e-mail:     gdkrueger@duke-energy.com
 
 

SOURCE Duke Energy
    HOUSTON and BEDMINSTER, N.J., Aug. 27 /PRNewswire-FirstCall/ -- Saltville
 Gas Storage Company, a high deliverability natural gas storage facility in
 southwest Virginia, has begun commercial operation. Companies that have
 contracted for storage services at the underground salt cavern facility are
 now injecting natural gas in preparation for this winter's heating season.
     The facility, being jointly developed by NUI Corporation's Virginia Gas
 Company and Duke Energy Gas Transmission (DEGT), is fully contracted this
 season.  The field is expected to yield about 1 billion cubic feet (Bcf) of
 working gas capacity in its inaugural winter.  Plans are to continue to expand
 the facility's storage capacity at a rate of about 1 Bcf a year, reaching more
 than 6 Bcf by 2007 and eventually expanding to 12 Bcf in the next phase.
     "NUI and DEGT have worked closely to move forward with our development of
 Saltville Gas Storage, a facility that will play an increasingly vital role in
 supplying needed natural gas to energy providers in the region," said Mark
 Abramovic, senior vice president, chief operating officer and chief financial
 officer of NUI.  "The high-withdrawal and quick-refill capabilities of the
 facility will provide a substantial natural gas peaking supply source for the
 southeast region of the United States."
     "More than half of the working gas initially stored at the Saltville
 facility will be used to serve customers transporting natural gas through the
 Patriot Extension, DEGT's new 95-mile pipeline currently under construction
 from the company's existing East Tennessee Natural Gas (ETNG) system," said
 Pat Whitty, ETNG vice president of marketing.
     "The November in-service of Patriot will allow customers throughout the
 southeast United States -- particularly in North Carolina, Virginia and
 Tennessee -- to receive benefits from this new significant supply source,"
 Whitty added.
     Both NUI and DEGT maintain that the lack of peaking storage in the region
 has created a strong interest in Saltville Gas Storage and discussions
 continue with additional customers for the 2004 winter heating season.
     Saltville Gas Storage interconnects with Virginia Gas Pipeline Co. and
 ETNG.  At full phase one projected capacity, Saltville will be capable of
 delivering up to 500 million cubic feet of natural gas per day to the
 surrounding region.  NUI already operates an existing 1.1 Bcf high
 deliverability storage facility at Saltville, which also is fully contracted
 for the coming heating season.
     NUI Corporation, based in Bedminster, NJ, is a diversified energy company
 that operates natural gas utilities, as well as businesses involved in natural
 gas storage and pipeline activities and wholesale energy portfolio and risk
 management.  NUI Utilities' companies include Elizabethtown Gas Company in New
 Jersey, City Gas Company of Florida and Elkton Gas Company in Maryland. Visit
 our Web site at www.nui.com.
     Duke Energy Gas Transmission is a North American leader in developing
 energy infrastructure and connecting major natural gas supply basins to
 growing markets. The company's natural gas operations include more than 18,000
 miles of interstate transmission pipeline and 250 billion cubic feet of
 storage capacity in Canada and the United States. More information on DEGT can
 be found at: http://www.duke-energy.com/businesses/companies/degt.asp.
     Duke Energy is a diversified multinational energy company with an
 integrated network of energy assets and expertise.  The company manages a
 dynamic portfolio of natural gas and electric supply, delivery and trading
 businesses -- meeting the energy needs of customers throughout North America
 and in key markets around the world.  Duke Energy, headquartered in Charlotte,
 N.C., is a Fortune 500 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.
 
     CONTACT:    Chris Reardon, NUI Corp.
     Phone:      908/719-4224
     e-mail:     creardon@nui.com
 
     CONTACT:    Gretchen Krueger, Duke Energy
     Phone:      713/627-4072
     24-Hour:    704/382-8333
     e-mail:     gdkrueger@duke-energy.com
 
 SOURCE  Duke Energy