By the OGJ Online Staff
HOUSTON, Mar. 12�Northern Border Partners LP, Omaha, Monday announced a definitive agreement to purchase Midwestern Gas Transmission from El Paso Corp.
The deal, expected to close in the second quarter subject to regulatory approvals, involves a 350-mile interstate natural gas pipeline from Portland, Tenn. to Joliet, Ill.
Midwestern connects to other pipeline systems including Alliance Pipeline, Northern Border Pipeline, Tennessee Gas Pipeline, Trunkline Gas Co., and Texas Gas Transmission to provide service to markets in Kentucky, Indiana, southern Illinois, and the Joliet/Chicago market hub.
Bill Cordes, Northern Border chairman and CEO, said, "This acquisition fits our strategy of acquiring complementary interstate pipelines and midstream assets. The addition of Midwestern to our pipeline group will enhance market opportunities for shippers on both the Midwestern and Northern Border Pipeline systems, especially in serving the growing power generation markets.''
Northern Border Partners LP owns 70% of Northern Border Pipeline Co., which owns a 1,214-mile interstate line that transports gas from the Montana-Saskatchewan border to markets in the midwestern US.
Through Crestone Energy Ventures, the partnership owns interests in major gathering systems in the Powder River and Wind River basins in Wyoming. In addition, the Partnership owns the Black Mesa Pipeline, a coal-water slurry pipeline in the southwestern US.