NRGY Executes Binding Commercial Agreements on North-South Project
Inergy Executes Binding Commercial Agreements on North-South Project
KANSAS CITY, Mo., Feb 16, 2010 (BUSINESS WIRE) -- Inergy, L.P. (NASDAQ: NRGY) ("Inergy") announced today that its wholly owned, regulated subsidiary Central New York Oil And Gas Company, LLC ("CNYOG") has executed the binding precedent agreements necessary for the filing of regulatory approvals and construction of the previously announced North-South Project.
The North-South Project is expected to provide firm wheeling services to shippers desiring to move natural gas volumes bi-directionally to / from the Tennessee Gas Pipeline, Stagecoach hub, Stagecoach South and North Lateral receipt and delivery points, and Millennium Pipeline. Inergy has reached commercial terms and executed precedent agreements with shippers who participated in its non-binding open season. The agreements provide the commercial support necessary for Inergy to proceed with its development plans. Inergy expects the transportation capacity of the North-South Project to be in excess of 250,000 Dth/day, with the weighted average term of the agreements being approximately five years in duration.
"This project was met with overwhelming demand, and it provides an excellent opportunity to leverage our storage and transportation capabilities with the needs of our customers and the market to provide access to the Marcellus Shale natural gas supply," said John Sherman, President and CEO of Inergy, L.P. "The North-South Project, when combined with our future plans for a MARC I hub line, will allow Inergy to maximize the utilization of existing infrastructure and provide investors with stable demand-driven returns from this organic growth opportunity."
"We are very pleased to have obtained sufficient commitment from parties to allow us to continue moving forward with our expansion plans," said Bill Moler, Senior Vice President, Inergy Midstream. "We look forward to meeting the expectations of our expansion customers and to the continuation of superior service to our existing customer base."
Inergy will be sponsoring a "binding open season" to determine the final size and scope of the project in the next three weeks. Inergy expects to file a Natural Gas Act 7(c) application with the Federal Energy Regulatory Commission for a certificate of public convenience and necessity in the Spring of 2010 and anticipates the North-South Project to be placed into service by late 2011.