Inergy subsidiary Central New York Oil and Gas LLC (CNYOG) has applied to FERC for a Certificate of Public Convenience and Necessity to construct and operate the MARC I Hub Line, a proposed 30-inch diameter bidirectional pipeline in Bradford, Sullivan and Lycoming counties in Pennsylvania.

Assuming Federal Energy Regulatory Commission (FERC) approval, the pipeline, which would extend between Inergy's Stagecoach South Lateral Interconnect with Tennessee Gas Pipeline Co. (TGP) near its compressor Station 319 and Transco near its compressor Station 517, is expected to enter service in mid-2012. According to the application, the project would have approximately 550,000 Dth/d of firm capacity.

"The proposed MARC I project will provide a critical addition to the interstate pipeline infrastructure serving the Marcellus Shale producing region," CNYOG said in its application. "In connection with CNYOG's existing Stagecoach facilities, the MARC I facilities will interconnect three major interstate pipelines and an interstate storage facility to provide enhanced market access to Marcellus Shale producers and expanded transportation and storage options to shippers on TGP, Transco, Stagecoach and Millennium Pipeline."

The application seeks FERC authority to build an approximately 39-mile long pipeline, a new compression facility with 16,360 hp of gas-fired compression in the vicinity of the Transco interconnect in Sullivan County, PA, an additional compressor unit with 15,300 hp of electric-powered compression in Bradford County, PA, and related metering, flow control and appurtenant facilities. The application also seeks authority to provide open-access firm and interruptible transportation service in interstate commerce through the MARC I facilities, in addition to the firm and interruptible storage and interruptible wheeling services that CNYOG is already authorized to provide on its Stagecoach system.

Last month CNYOG said it had secured the binding agreements it needed in order to apply for permits to construct the MARC I project (see Daily GPI, July 13).

The project is one of two complementary efforts the company has in the works that would serve Marcellus Shale production. Combined with the previously announced North-South Project, MARC I would allow Inergy to wheel gas on a firm basis through approximately 75 miles of pipe to and from TGP's 300 Line, Transco's Leidy Line and the Millennium Pipeline and all points in between. The projects are expected to add a combined 45,000 hp of compression and 875,000 Dth/d of transportation capacity to Inergy's midstream business in the Northeast.

The North-South Project consists of compression and measurement facilities on the existing Inergy Stagecoach Laterals and when completed is expected to have firm capacity of 325,000 Dth/d. The project is supported by long-term contracts and is expected to be in service by late 2011.

Last summer the company said open seasons had shown there was significant interest in the projects (see Daily GPI, Aug. 27, 2009; July 28, 2009).

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