NiSource Inc. : NiSource Midstream Services Updates Details on Western Pennsylvania's Big Pine Gathering System
04/05/2012| 09:05am US/Eastern
HOUSTON, April 5, 2012 /PRNewswire/ -- Announced in January, NiSource Gas Transmission & Storage's (NGT&S) Midstream Services today confirmed additional details on its Western Pennsylvania natural gas pipeline project. Newly named the Big Pine Gathering System, the project includes the installation, refurbishment and operation of approximately 70 miles of pipeline facilities in the hydrocarbon-rich Western Pennsylvania shale production region, including Allegheny, Butler, Armstrong, Indiana and Westmoreland counties.
Anchored by a long-term gathering agreement with producer XTO Energy Inc. (XTO), a subsidiary of ExxonMobil, the Big Pine Gathering System is expected to provide an initial capacity of approximately 425 million cubic feet per day with interconnects to NGT&S' own Columbia Gas Transmission pipeline system, as well as Texas Eastern Transmission and Dominion Transmission. The NiSource Midstream team also is in discussions with additional producers in the area looking to secure long-term commitments on the project.
"The Big Pine Gathering System supports the critical needs of Pennsylvania's Marcellus producers to safely, efficiently and reliably get their natural gas to a choice of markets," said Jimmy D. Staton, executive vice president and NGT&S group CEO. "We're pleased to have this initial agreement with XTO Energy. They, along with other producers in the area, will now have the capacity and access to markets needed in this burgeoning shale gas development play in western Pennsylvania by the end of this year."
"This investment underscores NiSource's commitment to being the premier provider of midstream services to producers, including gathering, treating, conditioning, processing, compression and liquids handling in the Marcellus and Utica shale plays," said Joseph A. Blount Jr., president and chief operating officer of the NiSource Midstream and Minerals Group.
The Big Pine Gathering System involves an approximately $150 million investment in pipeline facilities. Stakeholder outreach has begun, as well as preliminary preparation and right-of-way clearing. Construction is anticipated to begin in late summer, with an expected in-service date of December 2012.
About the NiSource Gas Transmission & Storage Companies, including NiSource Midstream Services: As units of NiSource Inc. (NYSE: NI), the NiSource Gas Transmission & Storage (NGT&S) companies include Columbia Gas Transmission, Columbia Gulf Transmission, Hardy Storage, Millennium Pipeline, Crossroads Pipeline and NiSource Midstream Services (NMS). NMS is focused on providing a variety of producer services including gathering, treating, conditioning, processing, compression and liquids handling in the Marcellus and Utica shale plays. Combined, the NGT&S companies operate approximately 15,000 miles of interstate natural gas pipeline and 37 storage fields, delivering more than one trillion cubic feet of natural gas per year. For more information, please visit www.ngts.com or www.nisourcemidstream.com.
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 NGT&S and its management. Although NGT&S 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 NGT&S' businesses; the success of regulatory and commercial initiatives; dealings with third parties over whom NGT&S has no control; actual operating experience of NGT&S' assets; the regulatory process; regulatory and legislative changes; the impact of potential new environmental laws or regulations; the results of material litigation; changes in general economic, capital and commodity market conditions; and counterparty credit risk and the matters set forth in the "Risk Factors" Section in NiSource Inc.'s 2010 Form 10-K and 2011 Forms 10-Q, many of which are risks beyond the control of NGT&S. NGT&S expressly disclaims a duty to update any of the forward-looking statements contained in this release.
SOURCE NiSource Midstream Services