Kinder Morgan Inc. subsidiary Natural Gas Pipeline Co. of America (NGPL) has extended long-term, firm transportation and storage contracts with Northern Indiana Public Service (NIPSCO) covering 400,100 Dth/d of transportation capacity and 10.5 Bcf of storage space.

With an effective date of Dec. 1, the new contracts increase NIPSCO’s firm-transportation service by 25,000 Dth/d over the current level of 375,100 Dth/d. The deal will continue through March 31, 2006. An existing agreement would have expired on Nov. 30, 2002. The companies also have extended a firm-storage contract totaling 10.5 Bcf for an additional three years. That new contract takes effect on April 1, 2003, when the current agreement expires, and continues through March 31, 2006.

CEO Richard Kinder said NGPL is expected to contribute more than 40% of KMI’s projected cash flow in 2002. NGPL consists of a 10,000-mile pipeline system with peak deliverability of 5.7 Bcf/d. NGPL is the largest transporter of natural gas to the high-demand Chicago market and NIPSCO, a NiSource subsidiary, is one of its largest customers.

“NIPSCO’s commitment to acquiring reliable, competitively priced supplies to its customers can only be accomplished through successful working relationships with its upstream pipeline suppliers,” said Barrett Hatches, NIPSCO CEO. “The extension of these contracts underscores our confidence in NGPL remaining a viable service provider in the future.”

Merrillville, IN-based NIPSCO is one of the 10 energy distribution companies of NiSource Inc. It has nearly 700,000 natural gas and 430,000 electric customers across the northern third of Indiana.

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