Further Enhancing Connectivity to the Northeast Natural Gas Market
KANSAS CITY, Mo., Sep 29, 2011 (BUSINESS WIRE) --
Inergy, L.P. (NYSE:NRGY) announced today that its wholly-owned
subsidiary, Inergy Midstream, LLC ("Inergy"), is conducting a
non-binding Open Season for shippers desiring to transport incremental
natural gas volume on the existing Stagecoach North and South laterals
and to a new pipeline interconnect with Dominion Transmission ("DTI").
The existing North-South Project, which Inergy expects to place into
service in October 2011, will enable shippers to transport up to 325
MMcf/d of gas bi-directionally on a firm basis from the Millennium
Pipeline to Tennessee Gas Pipeline's ("TGP") 300 Line and all points in
between. The additional capacity expansion contemplated by this Open
Season, as described below, will effectively enable shippers to
transport a greater quantity of gas bi-directionally on a firm basis
over the same route covered by the North-South Project and also to DTI.
Capacity Expansion and Extension Project
The North-South II Capacity Expansion and Extension ("NS-II") Project
seeks to gauge interest from shippers that desire to transport
additional gas volume bi-directionally on a firm basis through Inergy's
existing Stagecoach laterals from the Millennium Pipeline to TGP's 300
Line and all points in between.
Furthermore, shippers can elect to participate in the extension of the
existing Stagecoach laterals by electing to transport volumes
bi-directionally from TGP's 300 Line and intermediate points including
the Millennium Pipeline to a new interconnect with DTI in Tompkins
County, New York, where an intrastate pipeline owned by Inergy's
affiliate Inergy Pipeline East, LLC ("IPE") interconnects with DTI's
transmission. DTI has recently announced plans to expand this system for
gas desiring redelivery to Iroquois Gas Transmission system. Existing
firm storage capacity holders at Stagecoach may also elect DTI as a new
point of receipt/delivery subject to their existing injection and
withdrawal rights, their North lateral capacity, and volume allocation.
The NS-II Project may include: the setting of additional compression,
the expansion of existing measurement facilities, and the installation
of approximately three miles of pipe connecting Millennium Pipeline and
the Stagecoach North lateral to IPE's pipeline.
The proposed project is targeting Northeast shippers seeking: (i)
additional market supply flexibility and reliability; (ii) access to
additional gas supplies in the market area; (iii) liquid points of sale
for locally produced gas from the Marcellus Shale and Trenton-Black
River plays, among others; (iv) additional storage opportunities; and
(v) capture of pricing differentials between the various interconnected
market pipelines. Once complete, the NS-II project is expected to
enhance the connectivity of the Stagecoach natural gas storage facility
to four market area pipelines; including, TGP, Transco, Millennium, and
DTI.
Rates, including fuel retention, for the NS-II project will be
determined after the conclusion of this non-binding Open Season and are
dependent upon the final scope of the facilities and firm service
commitments.
This non-binding Open Season will close October 15, 2011, at 5:00 p.m.
CT.
The anticipated in-service date for the NS-II Project is September 1,
2013, based on assumed volume commitments and resulting facilities.
For questions concerning this non-binding Open Season or for Open Season
packages, contact Ron Happach at 720-279-6344 or by email, rhappach@inergyservices.com.
Open Season packages can also be downloaded from the following websites:
About Inergy Midstream, LLC
Inergy Midstream, LLC, a wholly-owned subsidiary of Inergy, L.P.,
currently owns and operates the Tres Palacios gas storage facility, the
Stagecoach gas storage facility, the Thomas Corners gas storage
facility, the Steuben gas storage facility, and the Seneca Lake gas
storage facility. These four natural gas storage facilities have a
combined 79.5 Bcf of working gas capacity. Inergy Midstream also owns
and operates a solution mining and salt production company, US Salt,
LLC, and a liquefied petroleum gas ("LPG") storage facility near Watkins
Glen, NY.
About Inergy, L.P.
Inergy, L.P., with headquarters in Kansas City, Missouri, is a publicly
traded master limited partnership. Inergy's operations include the
retail marketing, sale, and distribution of propane to residential,
commercial, industrial, and agricultural customers from customer service
centers throughout the United States. Inergy also operates a midstream
natural gas storage and transportation business and a supply logistics,
transportation, and wholesale marketing business that serves independent
dealers and multi-state marketers in the United States and Canada.
This news release contains forward-looking statements, which are
statements that are not historical in nature such as the expectation
that the existing North-South Project will be placed into service in
October 2011, the NS-II Project will add additional transportation
capacity in the northeast, the proposed pipeline extension will
interconnect with DTI, and the expectation that commercial operations
will commence in 2013. Forward-looking statements are subject to certain
risks, uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize or any underlying assumption proves
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. Among the key factors that could cause actual
results to differ materially from those referred to in the
forward-looking statements are: weather conditions that vary
significantly from historically normal conditions; the demand for high
deliverability natural gas storage capacity in the Northeast; the
general level of petroleum product demand and the availability of
natural gas and the price of natural gas to the consumer compared to the
price of alternative and competing fuels; our ability to successfully
implement our business plan with respect to our continued expansion of
our midstream operations; our ability to generate available cash for
distribution to unitholders; the outcome of rate decisions levied by the
Federal Energy Regulatory Commission; and the costs and effects of
legal, regulatory, and administrative proceedings against us or which
may be brought against us. These and other risks and assumptions are
described in Inergy's annual report on Form 10-K and other reports that
are available from the United States Securities and Exchange Commission.
Corporate news, unit prices, and additional information about Inergy,
including reports from the United States Securities and Exchange
Commission, are available on the Company's website, www.Inergylp.com.
For more information, contact Mike Campbell in Inergy's Investor
Relations Department at 816-842-8181 or via e-mail at investorrelations@inergyservices.com.
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SOURCE: Inergy, L.P.
Inergy, L.P.
Mike Campbell, 816-842-8181
investorrelations@inergyservices.com