Inergy Midstream, L.P., UGI Energy Services, Inc., a wholly owned subsidiary of UGI Corporation and Capitol Energy Ventures Corp., a wholly owned subsidiary of WGL Holdings, Inc., said UGI Energy Services, Inc. and Capitol Energy Ventures Corp. have executed binding precedent agreements for firm transportation capacity on Commonwealth Pipeline. These anchor shippers have agreed to buy firm transportation capacity on the Commonwealth Pipeline for a 10-year period at negotiated rates.
Commonwealth Pipeline will provide a direct, cost-effective path for bringing natural gas produced in the Marcellus and Utica Shale plays to growing markets in central and southeastern Pennsylvania and the greater Mid-Atlantic region. The planned interstate pipeline will consist initially of 120 miles of 30-inch pipeline extending from the southern terminus of the Inergy Midstream’s MARC I Pipeline in Lycoming County, PA to several points of interconnection in southeastern Pennsylvania with other interstate pipelines, including NiSource Gas Transmission and Storage, Texas Eastern Transmission, Transco Pipeline, and Eastern Shore Natural Gas Co.
Commonwealth Pipeline is also expected to connect with UGI Energy Service’s natural gas liquefaction, vaporization, and storage facility near Temple, PA and to run near or connect with multiple natural gas distribution systems in southeastern Pennsylvania.
The pipeline is expected to have an initial capacity of 800,000 Dth/d. The project sponsors have begun field work, including requesting survey permission from landowners. They anticipate filing with the FERC in early 2013 and placing the pipeline into commercial service in 2015.
Shippers interested in capacity on the Commonwealth Pipeline should contact David Hooker at (816) 714-5494 or email@example.com.