NiSource subsidiary Northern Indiana Public Service Co. (NIPSCO)has signed an agreement for 200 MMcf/d of firm short-haultransportation service on the Vector Pipeline project and isplanning a connection with the 1 Bcf/d pipeline, which is scheduledto be in service in October. In addition, Crossroads Pipeline,NiSource’s pipeline subsidiary, announced plans to construct aninterconnection with Vector. The 300-mile Vector pipeline wouldstretch to the Dawn Hub in Ontario from the Chicago hub in Joliet,IL.

“This agreement will provide Vector access to the largest andfastest growing portion of NIPSCO’s system and through theinterconnection with Crossroads, crucial access to the fast growingmarkets east of Indiana,” said Vector’s President Juri Otsason.”The interconnects with NIPSCO and Crossroads will further enhancethe value of Vector transportation held by its other firm shippersand provide access to a high value market for the significantamount of storage interconnected with Vector’s mainline insoutheast Michigan and southwestern Ontario, pipeline companyofficials said.

“Vector will provide NIPSCO with a very competitive source ofcapacity and further integrate NIPSCO’s system with the growingsources of natural gas supply at the Chicago Market Center to beprovided with the completion of the Alliance and Vector Pipelineprojects this fall,” said Dan Gavito, vice president corporate gassupply for NiSource. “This is a competitively priced service thatwill contribute to NIPSCO’s cost effective products servinghomeowners, businesses and others in our growing Indianadistribution market.”

Vector is a partnership of Enbridge Inc. (45% interest),Westcoast Energy (30%) and MCN Energy (25%). NIPSCO provides gas tonearly 700,000 customers and electricity to 416,000 customersacross the northern third of Indiana.

Vector will involve construction of 270 miles of 42-inchdiameter pipeline through Indiana and Michigan to the U.S. Canadianborder at the St. Clair River and two 30,000 hp compressorstations. It also will include a pipeline section leased fromaffiliate Michigan Consolidated Gas. Vector’s affiliate, VectorCanada, will continue gas transportation service from Michigan toDawn on a proposed 15-mile line.

Prior to its approval, Vector submitted to FERC signed precedentagreements with four shippers, two of which were affiliatedmarketers, for 828,300 Dth/d of firm transportation capacity, or82% of the total capacity of the project. The affiliated marketerssigned up for the majority (700,000 Dth/d) of the proposed space.

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