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WATKINS GLEN   ADVERTISEMENT

Inergy L.P. will expand in Schuyler

WATKINS GLEN—Inergy L.P. (Limited Partnerships) will expand in Schuyler County, after agreeing to buy a natural gas storage facility and two related pipelines from New York State Electric and Gas Corporation (NYSEG) for about $65 million.
The Seneca Lake storage facility located on U.S. Salt property outside of Watkins Glen is an underground salt cavern facility that will allow the company to store about two billion cubic feet of natural gas. The facility will let the company deliver up to 145 million cubic feet (mmcfd) per day, and can receive up to 75 mmcf of natural gas per day. It will also supply diversity, flexibility, and certainty in NYSEG stability.
“Inergy L.P. is extremely pleased to announce this agreement to acquire assets that are a strategic complement to our natural gas storage and transmission hub strategy,” said Sherman. “This acquisition expands our storage and transportation capacity and provides us with an important pipeline infrastructure that enhances the connectivity and flexibility we can offer customers on our system. The acquisition, which meets our investment criteria on a stand-alone basis, will also significantly enhance the value of Inergy’s existing assets and is expected to increase our economic return on future expansion projects in the northeast market.”
The Kansas City, Mo. based company will also acquired Liberty Propane and MGS Propane Corporation to help expand Inergy L.P., and accelerate all productivity in the Northeast.
Chief Executive Officer and President John J. Sherman predicts that this will provide a 20 percent growth, which will place them in a good position to be a leader in midstream business. This Seneca Lake gas storage facility will accelerate the process of linking a number of different pipelines together. It will also create flexibility and value for the current base, and provide a large economic return on the future, because of growing demand and supply. “The acquisition... will also significantly enhance the value of Inergy’s existing assets and is expected to increase our economic return on future expansion projects in the northeast market,” Sherman said.
Seneca Lake is already connected to the Dominion Transmission System through the Seneca West Pipeline and goes to the city gate of Binghamton, to the Seneca East Pipeline, which runs within about four miles of Inergy’s Stagecoach North Lateral interconnect with the Millennium Pipeline.
The Seneca Lake storage facility transaction will go through a regulatory period of about six months, so it won’t be until about June 2010 before everything is finalized.
Inergy L.P. is one of the fastest growing master limited partnerships in the country. The company does retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. It currently serves about 800,000 retail customers through about 300 customer service centers throughout the United States. The company also controls 40 bcf of natural gas storage, a liquid petroleum gas storage business, a solution-mining and salt production company, and a propane supply logistics, transportation, and wholesale marketing business that serves independent dealers and multi-state marketers in the United States and Canada.
For more information visit the company’s Web site at www.inergylp.com.
 


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