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Final Contracts Signed to Double Stagecoach Storage Capacity

Inergy LP said Wednesday that subsidiary Central New York Oil And Gas Co. has sold out the 13 Bcf of working gas capacity associated with the Stagecoach Phase II storage expansion in Tioga County, NY. Three unnamed customers signed binding precedent agreements for the storage capacity, which will be accessible from Tennessee Gas Pipeline through an existing connection and from Millennium Pipeline through a proposed connection.

"The interest in this project was overwhelming," said Inergy CEO John Sherman. The company filed an application with FERC for the expansion in February and has requested an expedited review and certificate by August so that service can begin in September 2007. The company is in the process of completing land and right-of-way acquisition, finalizing design and construction plans, and securing access to drilling rigs and equipment.

The Stagecoach storage facility is located 150 miles northwest of New York City. The storage field currently has 13.25 Bcf of working gas capacity, 250 MMcf/d of injection capacity and 500 MMcf/d of deliverability. Upon completion of the expansion, the field will have 26.25 Bcf of working gas capacity and 30.25 Bcf of total storage capacity, including base gas. The injection capacity and deliverability will remain the same because existing shippers only utilize about half of what's available, the company said. However, the expansion will extend the field's capability to maintain withdrawals at maximum rates to about 20 consecutive days from 12 days.

The expansion will involve the addition of four storage pools, eight new storage wells, recompletion of nine existing wells, six miles of new 20-inch diameter mainline, new gathering lines, 12,000 horsepower of compression and a new nine-mile 24-inch diameter lateral to Millennium Pipeline.

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