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Expansion Boosts Northern Border 2Q Income

Expansion Boosts Northern Border 2Q Income

Northern Border Partners of Houston can thank its recently completed expansion for significant gains in net income and throughput on Northern Border Pipeline in the second quarter. The company posted a 26% increase in second quarter net income to $20.6 million. That compares to $16.4 million for the same period in 1998. The increase is primarily attributable to the completion in December of Northern Border's Chicago Project, which increases capacity by more than 40% and plays a key role in gas transportation to the upper Midwest.

Larry DeRoin, Northern Border CEO, said the pipeline operated at an average utilization rate of 99% during the second quarter. Throughput volumes increased significantly compared to second quarter 1998, averaging 2,357 versus 1,657 MMcf/d, respectively.

Northern Border's expansion went on line in December with the 700 MMcf/d of capacity fully utilized (see Daily GPI Dec. 14, 1998). Northern Border Partners owns a 70% general partner interest in Northern Border Pipeline Co., which owns and operates the 1,214-mile pipeline that transports nearly 25% of all Canadian gas imports into the United States.

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