Inergy LP’s Inergy Midstream LLC is conducting two nonbinding open seasons, one for its Marc I Hub Line Project and the second for its North-South Project, through Aug. 21.
Together, these projects would allow shippers to wheel gas bidirectionally on a firm basis to and from the Millennium Pipeline in Tioga County, NY, about 75 miles to and from Transcontinental Gas Pipeline Corp.’s (Transco) Leidy Line near its compressor station 517, and to and from all points in between.
The Marc I Hub Line Project seeks to gauge interest from Northeast shippers that desire to move gas bidirectionally between the South Lateral of Inergy’s 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, Inergy’s 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.
The projects are targeting Northeast shippers seeking: additional market supply flexibility and reliability; access to additional gas supplies in the market area; liquid points of sale for gas from the Marcellus Shale and Trenton-Black River plays, among others; additional storage opportunities; and capture of pricing differentials between the various interconnected market pipelines.
The Marcellus Shale is getting increasing attention from producers, but the Trenton-Black River remains New York’s dominant gas play (see Daily GPI, July 8).
Rates for the Inergy projects, including fuel retention, will be determined after the conclusion of the open seasons and are dependent upon the scope of the facilities and firm service commitments. Indicative rates are provided for both projects in each of the open season packages. The anticipated in-service date for both projects is Sept. 1, 2011.
Inergy previously held an open season for the Marc I project last year (see Daily GPI, June 12, 2008).
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