Northern Border Partners L.P. has executed a definitiveagreement to purchase Midwestern Gas Transmission from El PasoCorp. for an undisclosed price. The sale is expected to close inthe second quarter of this year, subject to necessary approvals.

The Federal Trade Commission (FTC) ordered El Paso to divestthis pipeline asset as a condition to its merger with The CoastalCorp., which closed last month.

“This acquisition fits our strategy of acquiring complementaryinterstate pipelines and midstream assets,” said Northern BorderCEO Bill Cordes. It “will enhance market opportunities for shipperson both Midwestern and Northern Border Pipeline systems, especiallyin serving the growing power generation markets.”

The 350-mile Midwestern system extends from Portland, TN, toJoliet, IL, where it connects with Northern Border Pipeline andAlliance Pipeline. In addition to the growing Joliet/Chicago hub,Midwestern connects with Tennessee Gas Pipeline, Trunkline andTexas Gas Transmission to provide bi-directional service to marketsin Kentucky, Indiana and southern Illinois.

Northern Border Partners owns a 70% interest in Northern BorderPipeline, which extends 1,214 miles from the Montana-Saskatchewanborder to markets in the Midwest.

Northern Border Partners plans to hold an analysts conference at2 p.m. EST today to discuss the potential acquisition. It also willsimulcast the call live via the Internet atwww.northernborderpartners.com. The call can be re-played throughMarch 20 by dialing (888) 203-1112 and giving the confirmation code702576.

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