DENVER--(BUSINESS WIRE)--American Midstream Partners, LP (NYSE: AMID) (“the Partnership”) announced today that American Midstream (Alabama Intrastate), LLC (“Magnolia Intrastate”), a wholly-owned subsidiary of the Partnership, is commencing a non-binding open season for a proposed 45-mile extension of the Magnolia Intrastate pipeline (“Magnolia Extension”) to transport up to 500,000 dekatherms per day of natural gas for delivery to a major interstate pipeline beginning in 2019. The non-binding open season will commence on February 22, 2016 and terminate at 6:00pm CT on April 11, 2016.
The proposed Magnolia Extension would connect the existing Magnolia Intrastate pipeline to Tennessee Natural Gas Pipeline’s 500 Line, providing transport of natural gas under 20-year, firm transport agreements to Williams’ Transco pipeline through an existing interconnect. The proposed pipeline is intended to offer supply diversity to growing demand areas in the Southeast market, and specifically, address infrastructure constraints associated with the rapid development of natural gas from the Marcellus and Utica Shale formations in the Appalachian Basin. The anticipated in-service date for the Magnolia Extension is 2019.
Upon the close of the open season, American Midstream will evaluate service demand to determine if the proposed pipeline is economically viable and whether necessary facilities can be constructed by the proposed in-service date.
Open Season Timing and Procedures
The non-binding open season will commence February 22, 2016 and terminate at 6:00pm CT on April 11, 2016. Requests for capacity must be for a minimum initial contract term of 20 years from the date of first delivery. Prospective customers are required to submit a completed Service Request form by 6:00pm CT April 11, 2016 which can be found on the Magnolia Extension project site.
Prospective customers may also download a Service Request form here.
Resources and Contact
For interested parties, or those seeking more information about the non-binding open season, please visit the Magnolia Extension project site or contact:
Avery Plank, (713) 815-3961
APlank@AmericanMidstream.com
Director
of Commercial Development
Limitations and Reservations
American Midstream will consider non-conforming bids, but reserves all rights to reject, in its sole discretion, any individual non-conforming bid; provided, however, such discretion will be exercised in a not unduly discriminatory manner.
Each prospective shipper must meet American Midstream’s credit requirements.
In its sole discretion, American Midstream may provide periodic updates to this open season announcement via www.AmericanMidstream.com. American Midstream reserves the right to continue to market the Magnolia Extension to potential shippers beyond the close of the open season to the extent capacity remains available or can be developed on commercial and economic terms acceptable to American Midstream in its sole discretion.
In the event that valid service requests exceed available capacity and cannot be accommodated by changes in project scope or design, American Midstream reserves the right to pro-rate capacity among prospective customers on the Magnolia Extension; provided however, that shippers meeting the criteria of foundation or anchor shipper will have priority for available firm capacity.
American Midstream reserves the right, in its sole discretion, to discontinue or modify the terms of the open season or the project, including a decision not to proceed with or construct the project regardless of the level of interest. American Midstream also reserves the right to deny any and all service requests that do not satisfy the requirements set forth in this open season including any modifications of the terms of this open season, that are incomplete, contain additional or modified terms or are otherwise non-conforming, or are requested by a prospective customer that is unable to meet American Midstream’s credit requirements.
Final rates for service will be determined upon the conclusion of the open season and are dependent on the scope and type of facilities required to satisfy the firm service requests of customers who are awarded capacity.
The project including this open season is subject to all applicable rules, regulations, orders, and policies of the Federal Energy Regulatory Commission and other applicable federal and state laws, rules, and regulations. American Midstream reserves the right in its sole discretion to discontinue or modify this open season to satisfy any such applicable requirements.
About American Midstream Partners, LP
Denver-based American Midstream Partners, LP is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The Partnership provides midstream services in Texas, North Dakota, and the Gulf Coast and Southeast regions of the United States. For more information about American Midstream Partners, LP, visit www.AmericanMidstream.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements relate to, among other things, projections of operational volumetrics and improvements, growth projects, cash flows and capital expenditures. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "potential," "line-of-sight," and similar terms and phrases to identify forward-looking statements in this press release. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations and future growth involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors which are described in greater detail in our filings with the SEC. Construction of the growth projects described in this press release is subject to risks beyond our control including cost overruns and delays resulting from numerous factors. In addition, we face risks associated with the integration of acquired businesses, decreased liquidity, increased interest and other expenses, assumption of potential liabilities, diversion of management’s attention, and other risks associated with growth and acquisitions, if consummated. Please see our Risk Factor disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 10, 2015, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed with the SEC on November 9, 2015. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.
