Northern Border Partners LP on Tuesday said it has finalized the necessary contractual commitment to proceed with the Eastern Extension Project of its Midwestern Gas Transmission (MGT) pipeline, which would extend the potential for the system to deliver Chicago-sourced natural gas to Southeast and Mid-Atlantic markets.

Underpinning the project is a finalized precedent agreement with Piedmont Natural Gas Co. Inc., a local distribution company based in Charlotte, NC, for 120,000 Dth/d of long-term transportation service.

The proposed pipeline extension calls for the construction of approximately 30 miles of 16-inch pipe, which would move Chicago-sourced natural gas in a southeasterly direction from MGT’s current terminus at Portland, TN, to planned interconnects with the Columbia Gulf Transmission and East Tennessee Natural Gas pipelines. MGT is a 350-mile “header” system in the Midwest with forward and backhaul capability.

The project is estimated to cost between $22 million and $25 million, with in-service targeted for November 2006, Northern Border Partners said. Construction of the extension is subject to the approval of the Federal Energy Regulatory Commission.

“This project is significant to Midwestern and its customers as it opens new corridors of natural gas transportation between Chicago and growing Southeast and Mid-Atlantic markets,” said Northern Border Partners Chairman Bill Cordes.

Omaha, NE-based Northern Border Partners holds a 70% general partner interest in Northern Border Pipeline Co., owns Viking Gas Transmission and has a one-third interest in Guardian Pipeline LLC, as well as owning MGT. Its interstate pipeline network totals 2,317 miles, with a capacity of 4.3 Bcf/d.

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