Inergy Midstream, UGI and WGL announce plans to jointly develop a new interstate natural gas pipeline
February 29 2012 - 5:00PM
Business Wire
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.
Forward-Looking Statements
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forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
outlook for earnings, revenues and other future financial business
performance or strategies and expectations. Forward-looking
statements are typically identified by words such as, but not
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“believes,” “plans,” and similar expressions, or future or
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Although we believe such forward-looking statements are based on
reasonable assumptions, we cannot give assurance that every
objective will be achieved. Forward-looking statements speak only
as of today, and we assume no duty to update them. Factors that
could cause actual results to differ materially from those
expressed or implied include, but are not limited to, general
economic conditions and the factors discussed under the “Risk
Factors” heading in our most recent annual report on Form 10-K and
other documents we have filed with, or furnished to, the U.S.
Securities and Exchange Commission.
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