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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                 ---------------

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended March 31, 2001                Commission File Number 333-51713

                        MARKET HUB PARTNERS STORAGE, L.P.
             (Exact name of Registrant as Specified in its Charter)

<TABLE>
<CAPTION>
<S>                                               <C>
                    Delaware                                   76-0558052
 (State or Other Jurisdiction of Incorporation)    (IRS Employer Identification No.)
</TABLE>

                              5400 Westheimer Court
                                  P.O. Box 1642
                             Houston, TX 77251-1642
                    (Address of Principal Executive Offices)
                                   (Zip code)

                                  713-627-5400
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No __

The Registrant meets the conditions set forth in General Instructions (H)(1)(a)
and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced
disclosure format. Part I, Item 2 has been reduced and Part II, Item 4 has been
omitted in accordance with such Instruction H.

All of the Registrant's interests are indirectly owned by Duke Energy
Corporation (File No. 1-4928), which files reports and proxy materials pursuant
to the Securities Exchange Act of 1934.


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<PAGE>

                        MARKET HUB PARTNERS STORAGE, L.P.
                 FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2001
                                      INDEX
<TABLE>
<CAPTION>
<S>                                                                                                 <C>
Item                                                                                                  Page

                                                     PART I. FINANCIAL INFORMATION

1.   Financial Statements..............................................................................1
     Consolidated Statements of Operations for the Three Months Ended March 31, 2001 and 2000..........1
     Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2001 and 2000..........2
     Consolidated Balance Sheets as of March 31, 2001 and December 31, 2000............................3
     Notes to Consolidated Financial Statements........................................................4
2.   Management's Discussion and Analysis of Results of Operations and Financial Condition.............5

                           PART II. OTHER INFORMATION

1.   Legal Proceedings.................................................................................6
6.   Exhibits and Reports on Form 8-K..................................................................6

     Signatures........................................................................................7
</TABLE>


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
From time to time, the Company's reports, filings and other public announcements
may include assumptions, projections, expectations, intentions or beliefs about
future events. These statements are intended as "forward-looking statements"
under the Private Securities Litigation Reform Act of 1995. The Company cautions
that assumptions, projections, expectations, intentions or beliefs about future
events may and often do vary from actual results and the differences between
assumptions, projections, expectations, intentions or beliefs and actual results
can be material. Accordingly, there can be no assurance that actual results will
not differ materially from those expressed or implied by the forward-looking
statements. Some of the factors that could cause actual achievements and events
to differ materially from those expressed or implied in such forward-looking
statements include state and federal legislative and regulatory initiatives that
affect cost and investment recovery, have an impact on rate structures and
affect the speed and degree to which competition enters the natural gas
industry; the weather and other natural phenomena; the timing and extent of
changes in commodity prices and interest rates; changes in environmental and
other laws and regulations to which the Company is subject or other external
factors over which the Company has no control; the results of financing efforts,
including the Company's ability to obtain financing on favorable terms, which
can be affected by the Company's credit rating and general economic conditions;
growth in opportunities for the Company; and the effect of accounting policies
issued periodically by accounting standard-setting bodies.

                                      i
<PAGE>



                          PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                 (In thousands)

                                                  Three Months Ended
                                                      March 31,
                                            ----------------------------
                                                2001            2000
                                            ------------    ------------

Operating Revenues
      Salt cavern storage revenues              $ 8,544         $ 7,925
      Hub service revenues                        2,839             314
                                            ------------    ------------
           Total operating revenues              11,383           8,239
                                            ------------    ------------

Operating Expenses
      Operation and maintenance                     894           1,660
      Depreciation and amortization               2,442           1,465
      Property and other taxes                      508             315
                                            ------------    ------------
           Total operating expenses               3,844           3,440
                                            ------------    ------------

Operating Income                                  7,539           4,799

Other Income and Expenses                           131             267

Interest Expense                                    308           2,463
                                            ------------    ------------

Net Income                                      $ 7,362         $ 2,603
                                            ============    ============




                 See Notes to Consolidated Financial Statements.


                                       1
<PAGE>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>

                                                                                 Three Months Ended
                                                                                      March 31,
                                                                            -------------------------------
                                                                                 2001               2000
                                                                            ---------------    ------------
<S>                                                                            <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
      Net income                                                                $ 7,362             $ 2,603
      Adjustments to reconcile net income to net cash provided by
           operating activities:
                Depreciation and amortization                                     2,442               1,465
                (Increase) decrease in
                  Accounts receivable                                              (836)               (140)
                  Other current assets                                             (570)                 79
                  Other assets                                                      (69)                 77
                Increase (decrease) in
                  Accounts payable and other accrued liabilites                  (1,596)             (3,167)
                                                                               -----------         ---------
                     Net cash provided by operating activities                    6,733                 917
                                                                               -----------         ---------
CASH FLOWS FROM INVESTING ACTIVITIES
      Capital expenditures                                                         (821)               (466)
      Net decrease in advances payable - parent                                  (6,723)                  -
                                                                               -----------         ---------
                     Net cash used in investing activities                       (7,544)               (466)
                                                                               -----------         ---------
CASH FLOWS FROM FINANCING ACTIVITIES
      Distributions to partners                                                       -              (3,000)
                                                                               -----------         ---------
                     Net cash used in financing activities                            -              (3,000)
                                                                               -----------         ---------

      Net decrease in cash and cash equivalents                                    (811)             (2,549)

      Cash and cash equivalents at beginning of period                              811              14,029
                                                                               -----------         ---------
      Cash and cash equivalents at end of period                                    $ -            $ 11,480
                                                                               ===========         =========

Supplemental Disclosures
      Cash paid for interest, net of amount capitalized                           $ 834             $ 2,463

</TABLE>

                 See Notes to Consolidated Financial Statements.

                                       2
<PAGE>

                           CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                March 31,            December 31,
                                                                  2001                  2000
                                                               (unaudited)
                                                             -------------        ---------------
<S>                                                           <C>                 <C>
ASSETS

Current Assets
      Cash and cash equivalents                                $       -             $      811
      Accounts receivable                                          4,220                  3,623
      Accounts receivable, affiliate                               1,578                  1,339
      Natural gas imbalance receivables                           35,377                 39,447
      Other                                                          690                    120
                                                              -----------            -----------
           Total current assets                                   41,865                 45,340
                                                              -----------            -----------
Property, Plant and Equipment
      Cost                                                       199,231                198,410
      Less accumulated depreciation and amortization              29,437                 28,081
                                                              -----------            -----------
           Net property, plant and equipment                     169,794                170,329
                                                              -----------            -----------
Goodwill, net                                                    149,973                150,990
Note receivable, affiliate                                         5,000                  5,000
Other Assets                                                         286                    217
                                                              -----------            -----------
      Total Assets                                             $ 366,918              $ 371,876
                                                              ===========            ===========

LIABILITIES AND PARTNER'S CAPITAL

Current Liabilities
      Accounts payable                                         $       -                   $ 16
      Accrued interest                                               187                    829
      Accrued property tax                                           550                  1,152
      Natural gas imbalance payables                              35,377                 39,447
      Other accrued liabilities                                    2,204                  2,471
                                                              -----------            -----------
           Total current liabilities                              38,318                 43,915
                                                              -----------            -----------
Long-term Debt
      Advance payable - parent                                    63,500                 70,223
      Other                                                       27,210                 27,210
                                                              -----------            -----------
           Total long-term debt                                   90,710                 97,433
                                                              -----------            -----------
Partner's Capital                                                237,890                230,528
                                                              -----------            -----------
      Total Liabilities and Partner's Capital                  $ 366,918              $ 371,876
                                                              ===========            ===========

</TABLE>

         See Notes to Consolidated Financial Statements.



                                       3
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1. Nature of Operations

Market Hub Partners Storage, L.P. (the Company) was formed on December 31, 1997
as a Delaware limited partnership. The Company is wholly owned by indirect
subsidiaries of Duke Energy Corporation (Duke Energy). The Company owns and
operates two natural gas market hubs: Moss Bluff and Egan, located near Houston,
Texas and Acadia Parish, Louisiana, respectively. These hubs provide producers,
end-users, local distribution companies, pipelines and natural gas marketers
with high deliverability storage services, real time title tracking and other
hub services.

The Consolidated Financial Statements include the accounts of the Company and
all majority-owned subsidiaries and reflect all normal recurring adjustments
that are, in the opinion of management, necessary to present fairly the
financial position and results of operations for the respective periods.

Note 2.  Summary of Significant Accounting Policies

New Accounting Standards.  The Company adopted Statement of Financial Accounting
Standards  (SFAS) No. 133,  "Accounting  for Derivative  Instruments and Hedging
Activities," on January 1, 2001. The Company has determined  there was no effect
of implementing  SFAS No. 133 on the  consolidated  results of operations,  cash
flows or financial position.

Reclassifications.  Certain prior period amounts have been  reclassified  in the
Consolidated Financial Statements to conform to the current presentation.

Note 3.  Related Party Transactions

The note receivable balance of $5 million is due from a wholly-owned indirect
subsidiary of Duke Energy and is payable on demand, bearing interest at prime
plus 2%. For both quarters ended March 31, 2001 and 2000, interest income
included $131 thousand associated with this note receivable.

Advances payable - parent do not bear interest. Advances are carried as open
accounts and are not segregated between current and non-current amounts.
Increases and decreases in advances result from the movement of funds to provide
for operations and capital expenditures.

Note 4.  Gas Imbalances

The Consolidated Balance Sheets include in-kind balances as a result of
differences in gas volumes received and delivered. Natural gas volumes owed to
(from) the Company are valued at natural gas market prices as of the balance
sheet dates.

                                       4

<PAGE>


Item 2.  Management's  Discussion  and  Analysis  of Results of  Operations  and
Financial Condition.

Introduction

Market Hub Partners Storage, L.P. (the Company) markets natural gas storage
services to pipelines, local distribution companies, producers, end-users and
natural gas marketers. The Company receives fees for use of its salt cavern
storage facilities, which generally include a contractual demand charge for the
reservation of storage space and injection and withdrawal fees for the actual
use of the space. The Company offers short-term firm and interruptible hub
services to its customers. These services include balancing, wheeling, title
transfer, imbalance trading, and parking and loaning of natural gas.

Management's Discussion and Analysis should be read in conjunction with the
Consolidated Financial Statements.

CAPACITY EXPANSIONS

The Company's financial condition and results of operations are directly related
to the working storage capacity of the Company's storage facilities.

  ------------------------------------- ------------------- ----------------
                                           March 31,            March 31,
  (Billion cubic feet (Bcf))                  2001                 2000
  ------------------------------------- ------------------- ----------------
  Combined Facility Totals
    Working gas capacity (1)                  24.4                 22.7
    Average working gas capacity (2)          23.8                 22.7
    Average leased capacity (2)               20.3                 20.8
  ------------------------------------- ------------------- ----------------

  (1) As of the date indicated.
  (2) For the three month period ended as of the date
  indicated.

RESULTS OF OPERATIONS

Net income for the three months ended March 31, 2001 was $7.4 million compared
to $2.6 million for the comparable period of 2000. The increase was primarily
due to a $2.5 million increase in Hub Service Revenues associated with increased
parking and loaning activities and a $2.2 million decrease in Interest Expense
as a result of decreased outstanding long-term debt balances.

LIQUIDITY AND CAPITAL RESOURCES

Capital expenditures for the three months ended March 31, 2001 and 2000 were
$0.8 million and $0.5 million, respectively, and primarily represent the capital
expenditure program that commenced in 1997 to expand working gas capacity to a
combined 24 Bcf. The Company believes that funds generated from operations will
be sufficient to meet its liquidity requirements for the foreseeable future. The
Company anticipates expanding both Moss Bluff and Egan from 12 Bcf to 16 Bcf
each during 2001 through 2004. Capital expenditures associated with this
expansion are estimated to be $26 million.


                                       5

<PAGE>


PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

None


Item 6. Exhibits and Reports on Form 8-K.

(a)      Exhibits

              None

(b)   Reports on Form 8-K

         The Company filed no reports on Form 8-K during the first quarter of
2001.


                                       6
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                      MARKET HUB PARTNERS STORAGE, L.P.

                                      By: MARKET HUB PARTNERS STORAGE, LLC.,
                                      its general partner

May 14, 2001                          /s/ Dorothy M. Ables
                                      -----------------------------------------
                                      Dorothy M. Ables
                                      Senior Vice President, Finance and
                                      Administration and Chief Financial Officer


                                       7