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Duke Energy continued to rank among the top natural gas marketers and top power marketers in the U.S. in 1998. Trading and Marketing solidified its North American position during 1998 in a number of areas. Contracts associated with the new Maritimes & Northeast Pipeline were signed with the Irving Group, CGC and Stora Port Hawkesbury Ltd. to provide combined gas services of more than 97 MMcf/d to the large industrial facilities of these companies.
In British Columbia, Trading and Marketing was awarded a contract by BC Gas Utility Ltd. to provide up to 50 MMcf/d of natural gas beginning in 1999. Alliance Gas Management in Ontario signed an energy management agreement with Trading and Marketing to manage supply, storage and transportation of natural gas.
In the United States, Trading and Marketing began serving the City of Hamilton, Ohio, providing natural gas supply, transportation and storage services, along with financial services to provide price certainty.
Duke Energy's power trading business was bolstered by the inclusion in 1998 of Power Services' newly acquired California power generation assets (2,645 MW) and Phase I of Bridgeport Energy (340 MW). Trading and Marketing's power marketing business continued to grow strongly and in 1998 accounted for approximately 18 percent of its EBIT. In highly volatile power markets during the second quarter, Duke Energy's disciplined approach to trading and risk management provided for continued reliability and profitability.
Internationally, Duke Energy International established a strategic marketing presence in Australia through its purchase of the natural gas marketing operations of PG&E Corporation.
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(left) Duke Energy Trading and Marketing operates trading floors in Calgary, Alberta; Salt Lake City, Utah; and Houston, Texas. In 1998 volumes traded on these floors increased 15 percent for gas and 53 percent for electricity.
(right) From Charlotte, N.C., Duke Power's Bulk Power Marketing department has responsibility to purchase capacity and energy, as necessary to serve the business unit's "native load" customers and to sell temporary surplus capacity and energy in the wholesale market.
The Irving Oil Refinery in Saint John, New Brunswick, will be served by a 15-year natural gas supply contract with Duke Energy Marketing. Kenneth Irving, of Irving Oil, said the two companies have developed a strong business relationship based on their common commitment to natural resource development and energy marketing. Duke Energy's Denis Marcoux, left, and Irving Oil's Steve Kirstiuk, right, have helped build that relationship.
Duke Energy Trading and Marketing is providing competitive gas supply options for Mohawk Industries in Georgia's deregulated retail gas market. Norman Crow, right, and Brian Fox have worked closely with Gene Magnicheri, left, Plant Engineer at Mohawk Industries Calhoun, Ga., plant.
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