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Duke drops out

Energy giant balks at Alaska pipe agreement

Terry Halifax
Northern News Services

Yellowknife (July 26/02) - One of the key players supporting an Alaska gas pipeline withdrew that support last week.

Duke Energy announced they would no longer officially support an eight-month-old agreement between themselves and eight other energy and pipeline firms.

A non-binding memorandum of understanding (MOU) signed in Calgary on Nov. 15 detailed an agreement between Duke, Enron, El Paso Corporation, PG&E Corporation, Sempra Energy International, TransCanada Pipelines Ltd., Westcoast Energy Inc., and Williams Gas Pipeline.

Sarah McIntosh, manager of public affairs for Duke Energy, said they are still in support of the concept, but felt the project wasn't moving fast enough.

"We've withdrawn our participation of this non-binding MOU, because it did not achieve the objectives agreed to by the parties within the targeted timeframe," McIntosh said.

"But in no way does it signal an exit from Alaska."

"We are fully-committed to working with producers and other stakeholders to develop a successful Alaskan project," she added.

McIntosh said he could not comment on the exact details of the timeframe as that information is "confidential and proprietary."

Duke Energy are joint owners of Foothills Pipe Lines along with TransCanada PipeLines. Foothills holds the permits for the Canadian portion of the Alaska natural gas transportation system.

Foothills had not returned calls from Inuvik Drum at presstime.