DENVER--(BUSINESS WIRE)--American Midstream Midla, LLC (“Midla”), a subsidiary of American Midstream Partners, LP (NYSE: AMID), today announced an agreement in principle regarding Midla’s interstate pipeline that traverses Louisiana and Mississippi. Parties involved reached the agreement in principle in order to provide continued service to Midla’s customers while addressing safety concerns with the existing pipeline.
Midla and the parties agreed that Midla may retire the existing 1920s vintage pipeline and replace the existing natural gas service with a new 12-inch pipeline from Winnsboro, Louisiana to Natchez, Mississippi (the “Natchez Line”) to serve existing residential, commercial, and industrial customers. Customers not served by the new Natchez Line will be connected to other interstate or intrastate pipelines, other gas distribution systems, or offered conversion to propane service. The agreement is subject to final agreements and ongoing proceedings at the Federal Energy Regulatory Commission (“FERC”).
Under the agreement in principle and subject to FERC approval, Midla will execute long-term agreements to recover its investment in the Natchez Line. Midla estimates it will take up to two years to secure the necessary permits and construct the Natchez Line.
“We are pleased to have reached an agreement in principle, and believe the areas currently served by Midla will see increased economic activity associated with the reconstruction and reconfiguration,” said Steve Bergstrom, Executive Chairman, President and Chief Executive Officer of American Midstream Partners, LP. “When complete, the Natchez Line will offer higher pressure service with higher quality gas and additional available capacity, which should benefit efforts to bring new industry to the area. We appreciate the hard work and good faith of the parties involved and the FERC’s ADR division to bring about this agreement in principle and we look forward to finalizing the agreements and moving forward with the project.”
Midla anticipates filing a formal settlement with the FERC within the next 30 days and receiving approval by late 2014 or early 2015.
For Additional Information Contact: Dan Campbell at firstname.lastname@example.org Phone: 303-374-9847.
About American Midstream Partners, LP
Denver-based American Midstream Partners 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 the Texas, Gulf Coast and Southeast regions of the United States. For more information about American Midstream Partners, visit www.AmericanMidstream.com.
About American Midstream Midla, LLC
American Midstream Midla, LLC, a wholly-owned subsidiary of American Midstream Partners, LP, is a Delaware limited liability company, engaged in the business of transporting natural gas in interstate commerce subject to the jurisdiction of the Federal Energy Regulatory Commission. The Midla mainline facility was commissioned in 1926 to move gas from Monroe Field to a Standard Oil refinery in Baton Rouge, Louisiana.
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," 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 uncertainties related to the closing of the private placement described in this press release as well as a variety of other factors, which are described in greater detail in our filings with the SEC. The execution of the agreement in principle described in this press release is subject to negotiation of definitive agreements and other conditions beyond our control. In addition, if we execute the agreement, we face risks associated with the retirement of the Midla pipeline and the construction of the projects mentioned herein, as well as diversion of management’s attention and other risks associated with significant construction projects. Please see our Risk Factor disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2013 filed on March 11, 2014, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed on August 11, 2014. 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.