The Sponsors of the Commonwealth Pipeline Project Announce the Execution of Binding Precedent Agreem
Sep 20th 2012 8:05AM
Updated Sep 20th 2012 8:10AM
The Sponsors of the Commonwealth Pipeline Project Announce the Execution of Binding Precedent Agreements with Anchor Shippers
Enhancing Connectivity between Growing Demand Markets and Developing Supply Regions
KANSAS CITY, Mo. & VALLEY FORGE, Pa. & WASHINGTON--(BUSINESS WIRE)-- Inergy Midstream, L.P. (NYS: NRGM) ; UGI Energy Services, Inc., a wholly-owned subsidiary of UGI Corporation (NYS: UGI) ; and Capitol Energy Ventures Corp., a wholly-owned subsidiary of WGL Holdings, Inc. (NYS: WGL) , today announced that UGI Energy Services, Inc. and Capitol Energy Ventures Corp. have each executed binding precedent agreements for firm transportation capacity on the Commonwealth Pipeline. These anchor shippers have agreed to purchase firm transportation capacity on the Commonwealth Pipeline for a ten-year period at negotiated rates, upon and subject to the terms and conditions set forth in the precedent agreements.
The Commonwealth Pipeline will provide a direct, cost-effective path for bringing natural gas produced in the Marcellus and Utica Shale plays to growing natural gas markets in central and southeastern Pennsylvania and the greater Mid-Atlantic region. The proposed interstate pipeline will consist initially of approximately 120 miles of 30-inch pipeline extending from the southern terminus of the Inergy Midstream's MARC I Pipeline in Lycoming County, Pennsylvania, to several points of interconnection in southeastern Pennsylvania with other interstate pipelines, including NiSource Gas Transmission and Storage, Texas Eastern Transmission Company, Transco Pipeline, and Eastern Shore Natural Gas Company. As shown on the map below, the Commonwealth Pipeline is also expected to connect with UGI Energy Service's natural gas liquefaction, vaporization, and storage facility near Temple, Pennsylvania, and to run near or connect with multiple natural gas distribution systems in southeastern Pennsylvania.
The proposed interstate pipeline project is expected to have an initial capacity of 800,000 dekatherms of natural gas per day. The project sponsors have commenced field work, including requesting survey permission from landowners, and expect to request authorization from the Federal Energy Regulatory Commission ("FERC") later this year to use its pre-filing procedures. The project sponsors anticipate filing with the FERC in the first half of 2013 a Section 7(c) application under the Natural Gas Act for a Certificate of Public Convenience and Necessity, and placing the Commonwealth Pipeline into commercial service in 2015. Project representatives are working with prospective shippers and expect to execute additional precedent agreements over the next several weeks to further support the Project's construction and the filing of applications for regulatory approvals.
Shippers interested in purchasing capacity on the Commonwealth Pipeline should contact David Hooker at (816) 714-5494 or by email at email@example.com.
About Inergy Midstream, L.P.
Inergy Midstream, L.P., 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, natural gas pipelines with 355 MMcf/d of transportation capacity in New York and Pennsylvania, and a salt manufacturing business. Inergy Midstream is a subsidiary of Inergy, L.P. 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.
About UGI Energy Services, Inc.
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 (NYS: 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. (NYS: 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.
This news release contains forward-looking statements, which are statements that are not historical in nature, such as the expectation that (i) the Commonwealth Pipeline will provide a direct, cost-effective path for bringing locally-produced Shale gas to growing natural gas markets, (ii) the proposed pipeline will have an initial capacity of 800,000 dekatherms of natural gas per day, (iii) the sponsors will request FERC authorization later this year to use its pre-filing procedures, and will file a Section 7(c) application in the first half of 2013, and (iv) the Commonwealth Pipeline will be placed into commercial service in 2015. Forward-looking statements are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated, or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements are the demand for high deliverability natural gas transportation capacity in the Northeast and Mid-Atlantic regions; forecast costs and rates for the Commonwealth Pipeline project; our ability to execute additional precedent agreements with prospective shippers; general economic conditions; the outcome of regulatory applications (including, without limitation, the outcome of certificate and rate decisions by the FERC); construction risks associated with building pipelines, and the other factors discussed under the "Risk Factors" heading in each of our most recent annuals on Form 10-K and other reports that are available from the United States Securities and Exchange Commission.
Photos/Multimedia¬†Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50414947‚Ć©=en
David Hooker, 816-714-5494
KEYWORDS: ¬† United States¬† North America¬† District of Columbia¬† Missouri¬† Pennsylvania
The article The Sponsors of the Commonwealth Pipeline Project Announce the Execution of Binding Precedent Agreements with Anchor Shippers originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright ¬© 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.