Inergy LP's Inergy Midstream, LLC subsidiary said Wednesday its recent open seasons on two Northeast pipelines received a resounding response and both projects will now move forward with expected in-service targets of fall 2011. The pipes will further open up access to the booming Marcellus Shale play.

The Kansas City, MO-based storage and pipeline developer said it has received indications of interest exceeding 400% of the capacity required to construct the 43-mile Marc I Hub Line and indications of interest exceeding 600% of the capacity required to construct the North-South project. Together the projects will allow shippers to wheel/transport gas bidirectionally through up to a 36-inch diameter pipe on a firm basis approximately 75 miles between Millennium Pipeline in Tioga County, NY, and Transcontinental Gas Pipe Line Corp.'s Leidy Line in Columbia County, PA, and all points in between.

"The response to the open season exceeds our expectations, and we could not be more excited about validating the strong commercial interest in these projects," said Inergy CEO John Sherman. "It is our objective to integrate Inergy's uniquely positioned gas storage and transportation platform to provide gas producers, marketers and LDCs [local distribution companies] more flexibility and reliability in accessing the premium demand markets in the Northeast."

Inergy Midstream, which issued the open seasons late last month (see Daily GPI, July 28), said it is finalizing design and route selection, plans to structure long-term binding precedent agreements with each of the interested shippers, and expects to make all the required regulatory applications this fall.

The Marc I Hub Line and the North-South projects combined with the company's previously announced 7 Bcf Thomas Corners natural gas storage development, the 5 million-bbl Finger Lakes LPG storage development, which are expected to be operational in the spring 2010, and the 5 Bcf natural gas storage development opportunity at its U.S. Salt plant in Watkins Glen, NY, provide "visible organic growth opportunities" for the next two years, Inergy Midstream said.

"The combination of these two projects provides critical infrastructure in the Northeast through our network of assets, which includes approximately 40 Bcf of gas storage and related pipeline interconnections," said Bill Moler, senior vice president of Inergy Midstream. "Our platform with the addition of these projects will allow market participants to meet supply and demand needs by connecting the three major Northeast market pipes, Inergy's Stagecoach gas storage facility, and the prolific Marcellus Shale gas play in northeastern Pennsylvania."

The Marc I Hub Line project will specifically move gas bidirectionally between the South Lateral of the Stagecoach Gas Storage facility, Tennessee Gas Pipeline Co.'s (TGP) 300 Line near its Compressor Station 319, and Transco's Leidy Line near its compressor station 517. The project includes approximately 43 miles of lateral piping, compression and interconnect facilities connecting the Stagecoach South Lateral to Transco. When placed in service the project will allow Inergy to wheel volumes to and from Stagecoach's South Lateral, TGP, Transco and Millennium.

The North-South project seeks to gauge interest from shippers that desire to wheel gas on a firm basis through Inergy's existing north and/or south laterals of Stagecoach to and from TGP's 300 Line, the proposed Marc I Hub Line and Millennium. The project includes setting additional compression and expanded measurement facilities at Inergy's existing Millennium and TGP interconnects.

©Copyright 2009 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.