NiSource Inc.’s Market Hub Partners Storage L.P. (MHP) saw itsnet income rise 13% to $2.6 million for the first quarter of thisyear, up from $2.3 for the first quarter of 1999. Revenues rose to$8.2 million, up from $8 million last year at the Houstonsubsidiary, mostly because of expanded working gas storage capacityat its Moss Bluff, TX and Egan, LA natural gas storage facilities.

Working gas storage capacity at the two operating facilitiesincreased to nearly 22.7 Bcf, up from nearly 20.8 Bcf for the sameperiod last year. And, the company reportedly is continuing toexpand its program to increase its working gas storage capacity atits facilities to 24 Bcf.

While capacity is up, actual gas storage appears to be down froma year ago. NiSource’s wholly owned subsidiary EnergyUSA, whichalso lists MHP as a subsidiary, reports on its website that totalcurrent gas storage for the corporation last week was about 1200Bcf, down from 1999’s figure of more than 1500 Bcf. In 1998, actualgas storage was listed as approximately 1300 Bcf, and in 1997, itwas about 800 Bcf.

Thecompany’s operating expenses for the first three months ofthis year decreased to $3.4 million from $3.7 million last year,related primarily to a decrease in depreciation and amortizationfrom changing the estimated useful lives of the its caverns to 40years from 30 years.

MHP reported earnings before interest, taxes, depreciation andamortization of $6.3 million for the first quarter, compared with$6 million last year. Capital expenditures for the first quarterwere $0.5 million, compared with $1.4 million in 1999.

NiSource, through MHP and other subsidiaries, is developing asystem of natural gas market centers with salt cavern storagefacilities that include Moss Bluff, Egan, the Tioga facility inPennsylvania and two other market hubs now that are in variousstages of development in Mississippi and the Midwest.

See EnergyUSA’s website at www.energyusa.com, or visitNiSource’s website at www.nisource.com.

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