Central New York Oil and Gas Co. LLC (CNYOG), a subsidiary of Kansas City, MO-based Inergy LP, last Thursday was awarded a FERC certificate that will allow it to nearly double the working gas capacity of its Stagecoach Storage facility in southwestern New York State.

The Phase II expansion will add 13 Bcf of working storage capacity to the existing 13.6 Bcf high-deliverability facility in Tioga County, NY. The project includes 12,000 horsepower of additional compression, approximately six miles of 20-inch diameter mainline and a nine-mile, 24-inch diameter North Lateral that would connect with the proposed Millennium Pipeline to provide the storage facility with access to Canadian gas [CP06-64]. The Stagecoach facility currently is connected to one interstate pipeline — Tennessee Gas Pipeline’s 300 Line.

The project received significant shipper interest during a nonbinding open season that ended in December 2005. Shipper interest exceeded 200% of the available field inventory capacity of 13 Bcf and 300% of available deliverability, according to CNYOG. Those expressing interest included local distribution companies, gas-fired generators and third-party marketers, many of whom do not participate in the existing storage field, it said.

Inergy anticipates that the expansion will be in service by the fourth quarter of 2007. Inergy acquired CNYOG, owner and operator of Stagecoach, in August 2005. The Stagecoach field is the easternmost storage facility in the United States.

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