Inergy Midstream, UGI and WGL announce plans to jointly develop a new interstate natural gas pipeline

abarrelfull wrote on 02 Mar 2012 08:49
Tags: gas inergy n-america pipeline usa

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Inergy Midstream, L.P., UGI Energy Services, Inc. and Capitol Energy Ventures Corp., a subsidiary of WGL Holdings, Inc., today announced plans to jointly market and develop a new interstate pipeline known as the Commonwealth Pipeline. The proposed 200-mile, 30-inch pipeline is expected to transport at least 800,000 dekatherms per day of natural gas and is expected to be placed in service in 2015. UGI Energy Services and Capitol Energy Ventures Corp. are expected to execute precedent agreements to become anchor shippers on the line.

The proposed Commonwealth Pipeline will extend from the southern terminus of Inergy Midstream's MARC I pipeline in Lycoming County, Pennsylvania, due south through central and eastern Pennsylvania and will continue south to access markets across southeastern Pennsylvania, Philadelphia and the Baltimore and Washington, D.C. metropolitan areas. The pipeline will connect these attractive markets directly to reliable supplies of Marcellus natural gas production from across Pennsylvania while providing a more cost effective transportation path compared to traditional routes. The pipeline is expected to cross and interconnect with a number of interstate pipelines along its route, providing even greater supply diversity while providing producers with direct access to markets that are currently served only through existing interstate pipelines.

The sponsors expect to own equal equity interests in the project company formed to own the pipeline. Inergy Midstream will construct and operate the pipeline which is expected to cost approximately $1.0 billion and be funded equally by the sponsors.

A non-binding open season will be announced in March 2012, for shippers interested in acquiring capacity on the proposed pipeline.

• Inergy Midstream, UGI and WGL announce plans to jointly develop a new interstate natural gas pipeline

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