Inergy Midstream, L.P., UGI Energy Services, Inc. and Capitol Energy Ventures Corp., a subsidiary of WGL Holdings, Inc., today announced plans to jointly market and develop a new interstate pipeline known as the Commonwealth Pipeline. The proposed 200-mile, 30-inch pipeline is expected to transport at least 800,000 dekatherms per day of natural gas and is expected to be placed in service in 2015. UGI Energy Services and Capitol Energy Ventures Corp. are expected to execute precedent agreements to become anchor shippers on the line.
The proposed Commonwealth Pipeline will extend from the southern terminus of Inergy Midstream’s MARC I pipeline in Lycoming County, Pennsylvania, due south through central and eastern Pennsylvania and will continue south to access markets across southeastern Pennsylvania, Philadelphia and the Baltimore and Washington, D.C. metropolitan areas. The pipeline will connect these attractive markets directly to reliable supplies of Marcellus natural gas production from across Pennsylvania while providing a more cost effective transportation path compared to traditional routes. The pipeline is expected to cross and interconnect with a number of interstate pipelines along its route, providing even greater supply diversity while providing producers with direct access to markets that are currently served only through existing interstate pipelines.
The sponsors expect to own equal equity interests in the project company formed to own the pipeline. Inergy Midstream will construct and operate the pipeline which is expected to cost approximately $1.0 billion and be funded equally by the sponsors.
A non-binding open season will be announced in March 2012, for shippers interested in acquiring capacity on the proposed pipeline.
About Inergy Midstream, L.P. - Inergy Midstream, L.P.(NYSE: NRGM), headquartered in Kansas City, Missouri, is a master limited partnership engaged in the development and operation of natural gas and NGL storage and transportation assets. Inergy Midstream owns and operates natural gas storage facilities with aggregate working gas capacity of 41 bcf, natural gas liquids storage facilities with capacity of 1.5 million barrels and natural gas pipelines with 355 MMcf/d of transportation capacity in New York and Pennsylvania. Additional information about Inergy Midstream, including reports from the United States Securities and Exchange Commission, are available on the company’s website, www.Inergylp.com.
UGI Energy Services, Inc. owns 14.7 BCF of underground natural gas storage in north-central Pennsylvania, operates LNG and propane/air peaking plants in Pennsylvania, and is developing midstream projects throughout the Marcellus Shale region. UGI Energy Services also markets natural gas, electricity and liquid fuels to over 10,000 commercial and industrial customers at more than 30,000 locations in eight eastern states and Washington, D.C. and owns electric generation assets in Pennsylvania. UGI Energy Services is a wholly-owned subsidiary of UGI (NYSE: UGI), a distributor and marketer of energy products and services that, in addition to UGI Energy Services, operates natural gas and electric utilities in Pennsylvania and distributes propane both domestically and internationally. Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com.
About WGL Holdings, Inc. - Headquartered in Washington, D.C., WGL Holdings, Inc.(NYSE: WGL) has four operating segments: (i) the regulated utility segment, which primarily consists of Washington Gas, a natural gas utility that serves over one million customers throughout metropolitan Washington, D.C., and the surrounding region; (ii) the retail energy-marketing segment which consists of Washington Gas Energy Services, Inc., a third-party marketer that competitively sells natural gas and electricity; (iii) the commercial energy systems segment, which consists of Washington Gas Energy Systems, Inc., a provider of energy efficiency solutions to government and commercial clients and (iv) the wholesale energy solutions segment, which consists of Capitol Energy Ventures Corp., a non-utility asset optimization business. Additional information about WGL Holdings, Inc. is available on its website, wglholdings.com. Go to washingtongas.com for more information about Washington Gas Light Company.
Source: Business Wire
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