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Crossroads Plans Expansion, Link to NGPL, N. Border

February 15, 1999
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Crossroads Plans Expansion, Link to NGPL, N. Border

NIPSCO Industries, Inc. subsidiary Crossroads Pipeline is shooting for a 300% increase in system throughput with an extension of its Midwest pipeline system to new interconnects with Northern Border Pipeline and Natural Gas Pipeline Company of America. Crossroads plans to hold an open season for an additional 500,000 Dth/d of firm transportation services beginning Feb. 16 and concluding March 31. The system currently transports about 150,000 Dth/d from a connection with NGPL in Schererville, IN, to a connection with Columbia Gas at Maumee, OH.

"I still believe there's an eastbound project to be had," said John Fortman, a spokesman for the pipeline. "What we're trying to do here is position ourselves in Chicago." He said most other eastbound pipeline projects out of Chicago were premature, but the timing and the economics were right for this Crossroads expansion. The $35-$45 million expansion is not expected to increase Crossroads existing FT rate, which is $0.1093/Dth. Pending market commitments and federal regulatory approval, services could begin as early as November 2000.

"This expansion will enhance NI's strategy to link the growing Midwest and New England market centers," said Dan Gavito, vice president of NI Energy Services.

The expansion project would involve the addition of 25 miles of 30-inch diameter pipe to new interconnects with NGPL's pipeline system and Northern Border's proposed extension at North Hayden, IN.

Crossroads already tested the market for about a year with another proposed expansion involving CNG and its subsidiary East Ohio Gas, but had few takers.

For additional information on the Crossroads open season, contact John Fortman at 219-647-5681.

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