HOUSTON, Aug. 22, 2002 — Kinder Morgan Inc., through its subsidiary Natural Gas Pipeline Co. of America (NGPL), has extended long-term, firm-transportation and storage contracts with Northern Indiana Public Service (NIPSCO).
Effective Dec. 1, 2002, NGPL will provide NIPSCO, a subsidiary of NiSource (NYSE: NI – News), with up to 400,100 dekatherms per day (Dth/d) of firm-transportation service. The new agreement, which will continue through March 31, 2006, represents an increase over the current level of 375,100 Dth/d. The existing agreement would have expired on Nov. 30, 2002.
NGPL and NIPSCO have also extended a firm-storage contract totaling 10.5 billion cubic feet for an additional three years. The new contract takes effect on April 1, 2003, when the current agreement expires, and continues through March 31, 2006.
Richard Kinder, chairman and CEO of KMI, said, “We are pleased to enter into this mutually beneficial agreement, which further solidifies the strong relationship that we have enjoyed with NIPSCO for many years. NGPL’s successful track record in renewing existing contracts reflects our commitment to customer service and clearly demonstrates that we are meeting the needs of our shippers by providing safe, reliable and efficient natural gas service.” Kinder noted that NIPSCO is one of NGPL’s largest customers.
“NIPSCO’s commitment to acquiring reliable, competitively priced supplies to its customers can only be accomplished through successful working relationships with its upstream pipeline suppliers,” said Barrett Hatches, NIPSCO president and CEO. “The extension of these contracts underscores our confidence in NGPL remaining a viable service provider in the future.”
NGPL, which is expected to contribute more than 40 percent of KMI’s projected cash flow in 2002, is a 10,000-mile pipeline system with peak deliverability of 5.7 billion cubic feet per day. NGPL is the largest transporter of natural gas to the high-demand Chicago market.
Kinder Morgan, Inc. is one of the largest energy transportation and storage companies in America, operating more than 35,000 miles of natural gas and products pipelines. It also has significant retail distribution, electric generation and terminal assets. Kinder Morgan, Inc. owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP – News), the largest publicly traded pipeline limited partnership in the U.S. in terms of market capitalization. Combined, the two companies have an enterprise value of approximately $17 billion.
NIPSCO, with headquarters in Merrillville, Ind., is one of the 10 energy distribution companies of NiSource Inc. With nearly 700,000 natural gas customers and 430,000 electric customers across the northern third of Indiana, NIPSCO is the largest natural gas distribution company, and the second largest electric distribution company, in the state. NiSource distribution companies serve 3.7 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com .
SOURCE: Kinder Morgan, Inc.