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NORTHERN BORDER PIPELINE COMPANY PLANS SYSTEM EXTENSION
FOR IMMEDIATE RELEASE: Friday, May 29, 1998
HOUSTON - Northern Border Pipeline Company announced today that it will seek approval from the Federal Energy Regulatory Commission (FERC) to construct "Northern Border Project 2000." Project 2000, in addition to providing incremental Canadian natural gas to U.S. markets, would afford shippers on the Northern Border system access to the northern Indiana industrial zone, including Northern Indiana Public Service Company (NIPSCO), a major Midwest local distribution company with a large industrial load requirement and total annual system deliveries in excess of 300 billion cubic feet (Bcf).
"Based upon shipper commitments received at the end of April, we have completed preliminary facility designs and determined approximate rate impacts," said Larry L. DeRoin, chairman of the Management Committee of Northern Border Pipeline. "Project 2000 strategically positions Northern Border to move gas east and places our system in direct contact with major industries, including the county's largest steel mills in northern Indiana while achieving rate impacts well within the FERC's policy guideline for rolled-in rates," DeRoin said.
Pipeline capacity would be increased by 58 million cubic feet per day (MMcfd) in the segment from Monchy, Saskatchewan, to Ventura, Iowa; 195 MMcfd in the Iowa-Illinois segments; and 545 MMcfd in the extension to North Hayden, Indiana which would connect with NIPSCO.
Project 2000 capital expenditures are estimated to be $165 million. Northern Border anticipates filing the FERC application for Project 2000 in the fall of 1998 and estimates a November 1, 2000, in-service date.
Northern Border Pipeline Company is a general partnership which owns and operates a 969-mile interstate pipeline that transports about 20 percent of all Canadian gas imported into the United States. Northern Border is currently constructing a 390-mile pipeline expansion and extension to Chicago, Illinois. In 1997, the Northern Border Pipeline system delivered an average of 1,770 MMcf/d. Northern Border Partners, L. P. owns a 70 percent general partner interest in Northern Border Pipeline. The remaining 30 percent interest in Northern Border Pipeline is owned by subsidiaries of TransCanada PipeLines Limited. Northern Border Partners, L.P. common units are listed on the New York Stock Exchange under the symbol "NBP."
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 Pipeline Company 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 statement herein include, but are not limited to, political and regulatory developments that impact Federal Energy Regulatory Commission and state utility commission proceedings, Northern Border Pipeline's success in sustaining its positions in such proceedings or the success of intervenors in opposing Northern Border Pipeline's positions, competitive developments by Canadian and U.S. natural gas transmission peers, political and regulatory developments in Canada and conditions of the capital markets and equity markets during the periods covered by the forward looking statements.
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For additional information please contact:
Elaine Thomas
(713) 853-6814
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