Columbia Pipeline Announces $1.75 Bln Investment In Natural Gas Projects

(RTTNews) - Columbia Pipeline Group or CPG, a unit of NiSource Inc. (NI), announced a total of $1.75 billion in new investment in infrastructure that will enable it to transport up to 1.5 billion cubic feet per day or Bcf/D of natural gas from Marcellus and Utica production areas to markets served by its Columbia Gas Transmission and Columbia Gulf Transmission pipeline systems.

The company noted that the new investments include two significant projects, one of which involves construction by Columbia Transmission of a new natural gas pipeline in Ohio and West Virginia that will enhance its existing infrastructure and support natural gas supply development in western Pennsylvania, northern West Virginia and eastern Ohio.

The proposed Ohio and West Virginia pipeline, known as Columbia Transmission's Leach XPress project, is supported by long-term firm service agreements with Range Resources - Appalachia, LLC, Noble Energy, Inc., Kaiser Marketing Appalachian, LLC and American Energy Utica - LLC.

The project, which involves construction of approximately 160 miles of pipeline, compression and related facilities on Columbia Transmission's system, will provide access to multiple Marcellus and Utica receipt points and establish a substantial new header system serving the heart of the Appalachian supply basin.

A second project included in the overall investment announced today, which is supported by long-term firm service agreements with the same four shippers, will provide additional capability for shippers to efficiently transport Appalachian production to markets via Columbia Gulf, which spans a corridor stretching from the U.S. Gulf Coast to Appalachia. Columbia Gulf's Rayne XPress project primarily involves the addition of compression to Columbia Gulf's existing pipeline facilities to provide transportation of over 1.0 Bcf/D for the project shippers. The project is supported by long-term firm shipping contracts.

CPG said it has already begun extensive outreach to landowners and communities in areas where the projects will take place. Prior to construction, the projects will undergo comprehensive and transparent environmental reviews overseen by the Federal Energy Regulatory Commission. Throughout the review period, CPG's project teams will continue to work closely with landowners, local officials and communities to provide up-to-date information and ensure community involvement in the process.

CPG anticipates initiating construction of both projects in fall 2016, with a targeted in-service date during the second half of 2017.