National Fuel Gas Supply Corp., which is part of the Pipeline and Storage segment of National Fuel Gas Co. ("National Fuel"), 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 commenced on Wednesday, August 26, 2009, and will close at 11 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.
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