Northern Border Partners, L.P. Proceeds with Pipeline Extension
March 24 2006 - 4:15PM
Business Wire
Northern Border Partners, L.P. (NYSE:NBP) announced today that
Midwestern Gas Transmission Company (Midwestern) accepted the
certificate of public convenience and necessity issued by the
Federal Energy Regulatory Commission on March 10, 2006, for its
Eastern Extension Project. The certificate authorizes Midwestern to
construct and operate approximately 31 miles of 16-inch natural gas
transportation pipeline with a capacity of 120,000 dekatherms per
day (Dth/d) to provide Piedmont Natural Gas Company, Inc.
(Piedmont), an energy services company headquartered in Charlotte,
North Carolina, with a reliable and diversified transportation
source. This extension will move Chicago-sourced natural gas in a
southeast direction from Midwestern's current terminus at Portland,
Tennessee to interconnects with Columbia Gulf Transmission Company
(Columbia Gulf) and East Tennessee Natural Gas LLC (East Tennessee)
near Hartsville, Tennessee. Capital costs are estimated to be
approximately $28 million. The target in-service date is November
2006. Piedmont advised that this additional capacity is required to
meet its demand growth projections on the eastern side of its
distribution system in the Nashville area and in North and South
Carolina. Piedmont plans to provide 100,000 Dth/d of this natural
gas to its subsidiary, Nashville Gas Company, which serves
residential, commercial and industrial customers in Cheatham,
Davidson, Dickson, Robertson, Rutherford, Sumner, Trousdale,
Williamson and Wilson Counties. The remaining 20,000 Dth/d will be
delivered into the East Tennessee system for delivery to Piedmont's
distribution systems in North and South Carolina. "We are pleased
to have this opportunity for organic growth of our interstate
pipeline business and to serve Piedmont as our new customer," said
Bill Cordes, chief executive officer of Northern Border Partners.
"This project is significant to Midwestern and its customers as it
opens new corridors of natural gas transportation between Chicago
and growing southeastern markets." Northern Border Partners, L.P.
is a publicly traded partnership whose purpose is to own, operate
and acquire a diversified portfolio of energy assets. The
Partnership owns and manages natural gas pipelines and is engaged
in the gathering and processing of natural gas. More information
may be found at http://www.northernborderpartners.com. This press
release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Northern Border Partners,
L.P. believes that its expectations are based on reasonable
assumptions, it can give no assurance that such expectations will
be achieved. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include: Midwestern's ability to acquire all necessary
rights-of-way and obtain agreements for interconnects in a timely
manner; timely receipt of required regulatory clearances; and
Midwestern's ability to promptly obtain all necessary materials and
supplies required for construction.
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