National Fuel Gas Supply Corporation Announces Binding Open Season

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.

National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From May 2024 to Jun 2024