Inergy Midstream (NRGY), UGI Energy (UGI), WGL (WGL) to Develop, Market Commonwealth Pipeline

February 29, 2012 5:06 PM EST
Inergy Midstream, L.P. (NYSE: NRGM), UGI Energy Services, Inc. -- of UGI (NYSE UGI) -- and Capitol Energy Ventures Corp., a subsidiary of WGL Holdings, Inc. (NYSE: WGI), 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.

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