EXHIBIT 99.1

(NORTHERN BORDER PARTNERS, L.P. LOGO)

                                            NEWS            13710 FNB Parkway
                                            RELEASE         Omaha, NE 68154-5200


                                            For Further Information
                                            Contact:

                                            Media Contact:
                                            Beth Jensen
                                            (402) 492-3400

                                            Investor Contact:
                                            Ellen Konsdorf
                                            Lisa Couillard
                                            (877) 208-7318


NORTHERN BORDER PARTNERS, L.P. PROCEEDS WITH PIPELINE EXTENSION
- ---------------------------------------------------------------
FOR IMMEDIATE RELEASE:  Tuesday, August 17, 2004

         Omaha - Northern Border Partners, L.P. (NYSE - NBP) today announced
that it has finalized the necessary contractual commitment to proceed with the
Eastern Extension Project on its Midwestern Gas Transmission (MGT) pipeline. The
project is backed by a recently finalized precedent agreement for long-term
transportation of approximately 120,000 dekatherms per day (Dthd) with Piedmont
Natural Gas Company, Inc. (Piedmont), a local distribution company headquartered
in Charlotte, North Carolina.

         Construction of the pipeline extension will include approximately 30
miles of 16-inch pipe, with a capacity of 120,000 Dthd. This extension will move
Chicago-sourced natural gas in a southeasterly direction from MGT's current
terminus at Portland, Tennessee to planned interconnects with Columbia Gulf
Transmission Company and East Tennessee Natural Gas Company. Capital costs are
estimated to be between $22 million and $25 million and the proposed in-service
date is November 2006. Construction of the project is subject to approval by the
Federal Energy Regulatory Commission.

         "We are pleased to have this opportunity for organic growth of our
interstate pipeline business and to serve Piedmont as our new customer. This
project is significant to Midwestern and its customers as it opens new corridors
of natural gas transportation between Chicago and growing southeast and
mid-Atlantic markets," said Bill Cordes, chairman and chief executive officer of
Northern Border Partners.


         Northern Border Partners, L.P. is a publicly traded partnership formed
to own, operate and acquire a diversified portfolio of energy assets. The
Partnership owns and manages natural gas pipelines and is engaged in the
gathering and processing of natural gas. More information can be found at
http://www.northernborderpartners.com.


This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Although Northern Border Partners, L.P. believes that its
expectations are based on reasonable assumptions, it can give no assurance that
such expectations will be achieved. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include receipt of approval by the Federal Energy Regulatory Commission and
required regulatory clearances; our ability to obtain all necessary
rights-of-way and agreements for interconnects.