National Fuel Gas Supply Corporation Announces Binding Open Season
August 26 2009 - 3:04PM
Business Wire
National Fuel Gas Supply Corporation (“Supply Corporation”),
which is part of the Pipeline and Storage segment of National Fuel
Gas Company (“National Fuel”) (NYSE: NFG), has announced that it is
commencing a binding Open Season for incremental transportation
capacity from new and existing system interconnects in the
Marcellus Shale fairway in central Pennsylvania. The expansion
facilities will serve key northeast markets via the Leidy,
Pennsylvania, natural gas market hub. The new pipeline and
compression facilities will be constructed largely along existing
Supply Corporation infrastructure in central Pennsylvania and may
be constructed in two phases, as determined by shipper
requests.
“This announcement is further demonstration of the strategic
value of National Fuel’s portfolio of assets. Current requests from
active Marcellus producers for access to interstate pipeline
capacity makes this the logical first step or phase to what we’ve
called our ‘West-to-East/Appalachian Lateral’ project. We are
uniquely positioned and ready to offer flexible, reliable and
efficient transportation services to producers and other customers
seeking to create access to the prolific supplies of natural gas
currently being developed from the Marcellus Shale. By integrating
these initial segments of the West-to-East/Appalachian Lateral
project with our existing infrastructure, Supply Corporation can
provide much-needed services to the marketplace in a timely
manner,” said Ronald J. Tanski, President, National Fuel Gas Supply
Corporation.
Supply Corporation is prepared to construct this expansion
project in phases. Phase I will be designed to transport
approximately 200,000 dekatherms per day (dth/d) from the Marcellus
producing area through a new 32-mile pipeline to be constructed
through Elk, Cameron, and Clinton Counties, Pennsylvania, to the
Leidy hub, with an anticipated in-service date of November 2011.
Phase II facilities will be designed to provide additional
transportation capacity for at least 300,000 dth/d, and will
consist of approximately 50 miles of new pipeline and compression,
extending the Phase I facilities through Clearfield and Jefferson
Counties, Pennsylvania, to Supply Corporation’s Line K in western
Elk County, for an anticipated in-service date of November
2012.
This expansion is being offered as a stand-alone project, but
the facilities are projected to become part of the previously
announced West-to-East/Appalachian Lateral project. The longer-term
West-to-East/Appalachian Lateral project involves additional
upstream and downstream pipeline and compression designed to
provide a transportation path from Clarington, Ohio, to Corning,
New York. Previous non-binding Open Seasons for capacity on this
project have received strong interest and Supply Corporation will
be working with those potential customers as part of this binding
Open Season.
Additional information about this binding Open Season can be
obtained at www.nationalfuelgas.com/supply, or by
calling Supply Corporation’s Interstate Marketing Department at
(716) 857-7740. The Open Season is to commence on Wednesday, August
26, 2009, and will close at 11:00 a.m. (EDT) on Thursday, October
8, 2009.
National Fuel Gas Company is an integrated energy company with
$4.4 billion in assets comprised of the following four operating
segments: Exploration and Production, Pipeline and Storage,
Utility, and Energy Marketing.
Through an integrated system of 2,877 miles of interstate
natural gas pipelines and 31 underground natural gas storage
fields, National Fuel Gas Supply Corporation and Empire Pipeline,
Inc. provide natural gas transportation and storage services to
affiliated and non-affiliated companies.
Additional information about National Fuel is available on its
Web site: www.nationalfuelgas.com or through its
investor information service at 1-800-334-2188.
Certain statements contained herein, including those that are
identified by the use of the words “anticipates,” “estimates,”
“expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,”
“believes,” “seeks,” “will,” “may” and similar expressions, are
“forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or
outcomes to differ materially from those expressed in the
forward-looking statements. The Company’s expectations, beliefs and
projections contained herein are expressed in good faith and are
believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the
following are important factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements: financial and economic conditions, including the
availability of credit, and their effect on the Company’s ability
to obtain financing on acceptable terms for working capital,
capital expenditures and other investments; occurrences affecting
the Company’s ability to obtain financing under credit lines or
other credit facilities or through the issuance of commercial
paper, other short-term notes or debt or equity securities,
including any downgrades in the Company’s credit ratings and
changes in interest rates and other capital market conditions;
changes in economic conditions, including global, national or
regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services;
the creditworthiness or performance of the Company’s key suppliers,
customers and counterparties; economic disruptions or uninsured
losses resulting from terrorist activities, acts of war, major
accidents, fires, hurricanes, other severe weather, or other
natural disasters; changes in the availability and/or price of
natural gas, and the effect of such changes on natural gas
production levels; significant differences between projected and
actual natural gas production levels; uncertainty of natural gas
reserve estimates; inability to obtain or retain sufficient
customers or commitments for planned projects; factors affecting
the Company’s ability to complete expansion projects as planned,
including among others geography, weather conditions, shortages or
unavailability of equipment and services required in construction
operations, unanticipated project delays or changes in project
costs or plans, and the need to obtain governmental approvals and
permits and comply with environmental laws and regulations; changes
in the availability and/or price of derivative financial
instruments; significant changes in competitive factors affecting
the Company; changes in laws and regulations to which the Company
is subject, including energy, environmental, tax, safety and
employment laws and regulations; governmental/regulatory actions,
initiatives and proceedings, including those involving expansion
projects, financings, rate cases, affiliate relationships, industry
structure, and environmental/safety requirements; unanticipated
impacts of restructuring initiatives in the natural gas and
electric industries; significant differences between the Company’s
projected and actual capital expenditures and operating expenses;
significant changes in the Company’s relationship with its
employees or contractors and the potential adverse effects if labor
disputes, grievances or shortages were to occur; or the cost and
effects of legal and administrative claims against the Company. The
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
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