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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