PNGTS to serve Maine paper mills.

PORTLAND, Maine--(BUSINESS WIRE)--Jan. 7, 1997--Portland Natural Gas Transmission System (PNGTS) announced today that it will transport 26 million cubic feet per day (MMcf/day) of natural gas to help meet the energy needs of two of the largest paper mills in Maine.

PNGTS will transport 8 MMcf/day of natural gas to Mead Paper in Rumford, Maine. Mead's Rumford facility employs 1,450 workers and manufactures high quality coated and specialty papers. In addition, PNGTS will transport 18 MMcf/day to Androscoggin Energy, LLC, an independent power producer that will generate electricity for sale and provide steam to help serve a portion of the energy needs of International Paper. International Paper (which is not affiliated with Androscoggin Energy) operates an integrated pulp and finished paper goods mill at Jay, Maine that directly employs more than 1,200 workers.

Michael A. Minkos, president of PNGTS Operating Co., LLC, stated that, "We are very pleased that Mead Paper and Androscoggin Energy have chosen PNGTS as their link to the North American natural gas grid, and we welcome them to our growing family of shippers." He added that, "These agreements, which are the first of their kind in Maine, demonstrate that PNGTS provides the reliability and flexibility that New England natural gas consumers are looking for."

According to Gary M. Curtis, vice president of Maine Operations for Mead, "Natural gas is a clean fuel that will help our company grow into the 21st Century." He added that "PNGTS will help meet our energy needs, improve the mill's competitive position and represents an important new investment for the entire region."

Including the agreements announced today, PNGTS has secured long- term commitments for 170 MMcf/day of firm transportation capacity. This represents more than 95 percent of PNGTS's expected initial throughput of 178 MMcf/day. PNGTS's other shippers include: Bay State Gas Company; Northern Utilities, Inc. (a Bay State subsidiary); TransCanada Gas Services, Inc.; CoEnergy Trading Company; and Wausau Papers of New Hampshire.

PNGTS will transport natural gas to Rumford and Jay, Maine, beginning in 1998, through a 43.5-mile (U.S. $34 million) lateral off the PNGTS mainline. PNGTS applied for the lateral facilities in a November 1, 1996, amendment filed with the Federal Energy Regulatory Commission (FERC Docket No. CP96-249-003).

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Note to editors: Portland Natural Gas Transmission System (PNGTS) is a proposed 272-mile, U.S. $302 million project sponsored by an international consortium of energy companies including subsidiaries of: Bay State Gas Company; Gaz Metropolitain and Company, Limited Partnership; MCN Investment Corporation; El Paso Energy; TransCanada PipeLines; and US Generating Company. PNGTS proposes to begin operations in November, 1998, and will transport natural gas from an interconnection with TransCanada PipeLines near Pittsburg, New Hampshire, to an interconnection with Tennessee Gas Pipeline near Haverhill, Massachusetts.

Additional Contact Information -- Questions concerning Androscoggin Energy, International Paper or Mead Paper should be addressed as follows:

Androscoggin Energy: Bryan Schueler, [phone] International Paper (Jay, Maine facility): Ted Wagnon [phone] Mead Paper (Rumford, Maine facility): Bob Stickney [phone]

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