BEDMINSTER, N.J., July 30, 2001 — NUI Corporation today moved another step forward in building on its energy trading strategy of creating strategically located energy-trading hubs through its wholesale energy-trading arm, NUI Energy Brokers.
The development comes in the form of a filing by East Tennessee Natural Gas (ETNG), a subsidiary of Duke Energy Gas Transmission (DEGT), of an application with the Federal Energy Regulatory Commission (FERC) seeking approval of the Patriot project to meet the growing energy needs of the southeastern United States. The $289 million project will transport natural gas along a new pipeline route – the Patriot Extension – as well as through expansion of the company’s existing ETNG system.
Upon completion, Patriot, along with other major natural gas supply lines in that area, will flow into the Saltville Gas Storage facility, in Saltville, Va., which will play a major role in satisfying the rapidly growing demands of the region. In May, NUI and ETNG announced they would jointly expand and develop the former embedded salt storage cavern toward storage of 10 billion cubic feet of natural gas.
“Development of the Saltville facility is the next step in the implementation of NUI’s business strategy,” explained John Kean, Jr., president and chief executive officer of NUI. Hubs such as Saltville will enable NUI to capitalize on the energy supply, wholesale trading and portfolio management opportunities arising in rapidly developing regions.
“The additional storage capacity that Saltville will provide is aimed at meeting the significant demand from local distribution companies as well as power plant development that is under way in the region,” explained Kean. “Our partnership with Duke Energy, the region’s primary energy provider, will enable our two companies to jointly address the region’s energy needs while promoting continued economic growth.”
The Patriot Extension – an approximately 94-mile pipeline from Virginia to North Carolina – will bring natural gas service to portions of southwest Virginia for the first time and introduce a competitive supply of natural gas to North Carolina from Appalachian and Gulf Coast producers. The Saltville Gas Storage facility will bring additional value and options to those contracting for natural gas transportation services.
The new 24-inch line will originate from the ETNG system in Wythe County, Va., cross Carroll, Patrick and Henry counties in Virginia and terminate in Rockingham County, N.C. The route also covers a few hundred yards in Floyd County, Va. About seven miles of a lateral pipeline will originate in Rockingham County, cross Pittsylvania County, Va., and end in Henry County, Va.
NUI Corporation, based in Bedminster, NJ, provides energy, telecommunications, consulting and sales outsourcing services nationwide. NUI operates seven natural gas utilities, and businesses involved in natural gas storage, pipeline and exploration; wholesale energy trading and portfolio management; retail energy sales; energy and environmental project development; energy consulting; sales outsourcing; telecommunications; and digital mapping and customer information systems and services. NUI has annual revenues exceeding $1 billion. Visit our web site a www.nui.com.
East Tennessee Natural Gas owns and operates two mainline systems in central Tennessee that converge near Knoxville, Tenn., and extend to a point near Roanoke, Va. The system has a current design capacity of more than 700 MMcf/d and provides unbundled, open-access transportation and storage services to 40 local distribution companies and 16 industrial companies in the region.
DEGT, the Houston-based Duke Energy business unit responsible for the company’s interstate natural gas pipeline operations, owns and operates 12,000 miles of interstate natural gas pipelines known as Texas Eastern Transmission, LP; Algonquin Gas Transmission Co.; East Tennessee Natural Gas Co.; and with others, owns Maritimes & Northeast Pipeline and Gulfstream Natural Gas System. Together, these companies transport 8 percent of the natural gas consumed in the United States.
DEGT also owns natural gas salt cavern facilities in Texas and Louisiana with a total storage capacity of 24 billion cubic feet, making it one of the largest owners of high-deliverability salt cavern storage facilities in the United States. Other natural gas storage projects in Mississippi and Pennsylvania are currently under development.
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 more than $49 billion in 2000. 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. The Patriot Extension site is located at www.patriotextension.com.