Inergy’s Marc I Hub Line Project and the North-South Project, when placed into service, will allow Inergy to wheel volumes on a firm transportation basis through approximately 75 miles of pipe to and from Tennessee Gas Pipeline’s (TGP) 300 Line (TGP), Transco’s Leidy Line (Transco), and the Millennium Pipeline and all points in between.
The two projects combined are expected to add over 45,000 horsepower of additional compression and 875,000 dekatherms per day of transportation capacity to Inergy’s midstream business in the Northeast.
The Marc I Hub Line Project is a 43 mile, 30” bi-directional pipeline located in Bradford, Sullivan, and Lycoming counties in Pennsylvania. The planned pipeline will extend between Inergy’s Stagecoach South Lateral Interconnect with TGP near its compressor station 319 and Transco near its compressor station 517.
The Marc I Hub Line Project is expected to have a minimum of 550,000 dekatherms per day of firm transportation capacity. Inergy has reached commercial terms and executed precedent agreements with minimum ten-year terms with anchor shippers.
Inergy has commenced a binding open season to determine the final size and scope of the project which will conclude on July 16, 2010. Inergy expects to file a Natural Gas Act 7(c) application with the Federal Energy Regulatory Commission for a Certificate of Public Convenience and Necessity this summer. Inergy expects the Marc I Hub Line Project to be placed into service in mid-2012.
The planned North-South Project consists of adding additional compression and measurement facilities to the existing Inergy Stagecoach Laterals and when completed is expected to have firm transportation capacity of 325,000 dekatherms per day. The North-South Project is supported by long-term contracts and is expected to be placed into service by late 2011.
John Sherman, president and CEO of Inergy, said: “These projects allow us to leverage our existing storage and transportation capabilities with the needs of our customers and the market in order to provide the infrastructure necessary to efficiently develop the Marcellus Shale and serve the growing Northeast natural gas markets.”
