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NiSource Gas Transmission & Storage Announces Crawford, Ohio Storage Expansion

Posted on: Thursday, 31 May 2007, 09:00 CDT

HOUSTON, May 31 /PRNewswire-FirstCall/ -- In recognition of the rapidly-growing demand for natural gas storage capacity serving markets in Ohio, the Mid-Atlantic and the Northeast, NiSource Gas Transmission and Storage (NGT&S) today announced plans to expand Columbia Gas Transmission's Crawford (Ohio) storage field by up to 15 Billion cubic feet of working gas and 250,000 dekatherms of daily deliverability.

NiSource Inc. unit Columbia Gas Transmission is the owner and operator of Crawford Storage Field and will develop the additional capacity. With its 37 storage fields and nearly 265 Bcf of working gas, NiSource's Columbia Gas Transmission is one of the nation's largest operators of underground natural gas storage.

Coupled with construction of additional pipeline infrastructure on the Columbia Gas Transmission pipeline system, this expansion will provide a key link between diverse supply sources and growing consumer markets. To assess the demand for the expanded storage and transportation capacity, NGT&S is conducting an open season from May 30th to June 21st to solicit non-binding expressions of interest from customers.

"With the influx of new gas supplies from the Rockies, Appalachia and the Gulf Coast, Columbia Gas' storage and pipeline assets in Ohio are perfectly positioned to match supply push projects with the needs of downstream markets," said Jimmy Thomas, Senior Vice President and Chief Commercial Officer.

NGT&S anticipates placing facilities in service to enable storage injections beginning in the second quarter of 2009. The final scope of the project will be determined based on market demand. The storage capacity will be offered at market-based rates, and the transportation capacity will be offered under Columbia Gas Transmission recourse tariff rates.

Recognizing the diverse needs of marketplace demand, NGT&S is offering interested bidders the opportunity to tailor this storage service to their particular needs by allowing them to indicate interest in daily deliverability levels ranging between 30 and 120 days of service and a corresponding range of withdrawal options.

In conjunction with the expanded storage service, NGT&S will offer additional firm transportation capacity to Columbia Gas Transmission markets west of Lanham (W.Va.) Compressor Station, as well as to pipeline interconnects with Texas Eastern Transmission (Zone M-2) Tennessee Gas Pipeline (Zone 4) and Dominion Transmission upstream of South Point, Ohio. NGT&S will consider other delivery points upon request.

The Crawford Storage Field is situated about 30 miles southeast of Columbus, Ohio in Fairfield and Hocking counties and is the largest of Columbia's storage fields. The expansion project will increase Crawford's working gas capacity to about 41 Bcf, making it one of the largest storage fields in the United States.

"The gas transmission and storage unit of NiSource is committed to growing operating earnings through disciplined capital investments like the Crawford storage expansion," said Christopher Helms, president of NGT&S. "Our customers have indicated to us that they need an interface between the supply driven projects coming out of the Rockies and Gulf Coast and their markets. The Crawford Expansion will meet those needs," he said.

The Crawford Storage Expansion is the latest project to be announced in a string of major capital projects under development at NiSource.

-- NiSource and its partner Piedmont Natural Gas placed Phase One of the $175 million Hardy Storage Project in service on April 1. Operated by Columbia Transmission and located in the desirable Mid-Atlantic market area, the Hardy storage field will provide 12 Bcf of capacity and 176,000 Dth/d of deliverability. The $60 million expansion of associated downstream transmission capacity, wholly owned and operated by Columbia Gas, is scheduled to be in-service later this year. All available capacity has been contracted for 15 year terms. -- The $175 million Eastern Market Expansion Project, an incremental expansion of two Columbia Transmission Storage Fields and pipeline capacity, was filed with the FERC on May 2. In 2009, the Eastern Market Expansion will provide an additional 6 Bcf of capacity and 97,000 Dth/d of storage deliverability. All available capacity has been contracted for 15 year terms. -- The Millennium Pipeline Project has received the required permits and is on track for a fourth quarter 2008 starting date. Developed with subsidiaries of KeySpan and DTE Energy, Millennium will provide 525,000 Dth/d of much needed pipeline capacity to New York markets. The project is supported by long term contracts. -- Over the past year Columbia Gulf Transmission has or will place into service several new interconnects in the vicinity of Delhi, Louisiana, to receive new gas supply from North Louisiana, East Texas and the Bossier Shale. Station modifications and expanded interconnects will give Columbia Gulf Shippers greater access to Gulf Coast, Florida, Mid-Atlantic and Northeastern Markets. -- A new bi-directional interconnect near Nashville, Tennessee, between Columbia Gulf and Midwestern Gas Transmission will go into service later this year which will give Columbia Gas markets access to new sources of supply and Midwestern shippers access to valuable Columbia Gas storage fields. -- In Appalachia, Columbia Gas has held a number of open seasons to gauge shipper support for system expansions. Several projects in excess of $50 million have been identified. About Columbia Gas Transmission and NiSource

Columbia Gas Transmission Corp. is an interstate pipeline company, operating a 12,750-mile network of natural gas pipelines in 10-Mid-Atlantic, Northeastern and Southern states, transporting approximately 1 trillion cubic feet of gas per year to 72 local gas distribution companies.

About NiSource

NiSource Inc. , based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high- demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at http://www.nisource.com/. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of NiSource and its management. Although NiSource believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are cautioned that the forward-looking statements in this presentation are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; the effectiveness of NiSource's outsourcing initiative; actual operating experience of NiSource assets; the regulatory process; regulatory and legislative changes; changes in general economic, capital and commodity market conditions; and counter-party credit risk.

NiSource Inc.

CONTACT: Media, Kelly Merritt, Communications Manager, +1-304-357-2283,kmerritt@nisource.com; or Investors, Randy Hulen, Director, InvestorRelations, +1-219-647-5688, rghulen@nisource.com, both of NiSource Inc.

Web site: http://www.nisource.com/

Source: PRNewswire-FirstCall

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