HOUSTON--(BUSINESS WIRE)--Crestwood Midstream Partners LP (NYSE: CMLP) (“Crestwood”) announced today that its subsidiary, Central New York Oil & Gas Company LLC (“CNYOG”), which owns the North-South and MARC I pipelines and the Stagecoach storage facility, has successfully concluded a non-binding open season to solicit interest for firm transportation of natural gas on a proposed new 30-mile pipeline extending CNYOG’s system to the proposed PennEast Pipeline, a new interconnect on Transco’s Leidy Line, and Transco’s proposed Atlantic Sunrise Expansion Project in Luzerne County, Pennsylvania. Crestwood has received non-binding indications of interest for firm transportation on the proposed MARC II Pipeline in excess of 700 million cubic feet per day (“MMcf/d”).
The MARC II Pipeline would provide additional market access for gas received from multiple receipt points into the existing CYNOG system including the Stagecoach storage facility, major gathering systems owned by Southwestern Energy and Access Midstream Partners, and both the Millennium and Tennessee Gas Pipeline interstate natural gas systems. CYNOG’s existing system has the capability to receive over 2.5 billion cubic feet per day (“Bcf/d”) of Marcellus supply and is in the process of adding a third interconnect with Access Midstream Partners’ gathering system in 2015 that will expand its total Marcellus supply access to approximately 3.3 Bcf/d. Crestwood plans to conduct a binding open season for the MARC II Pipeline in early November.
“The MARC II Pipeline project will provide an important and cost-effective link between abundant regional supplies of natural gas in North Central Pennsylvania and growing demand in the Mid-Atlantic and New England markets,” stated Heath Deneke, President of Crestwood’s Natural Gas Business Unit. “With connectivity into Crestwood’s existing CYNOG system, which currently receives more than 1.7 Bcf/d of natural gas and will have access to over 3.3 Bcf/d of Marcellus supply from various directly-connected gathering systems and Tennessee Gas Pipeline’s 300 Line, the MARC II Pipeline would provide a reliable long-term supply alternative to these markets.”
Crestwood will use the information received during the non-binding open season and the subsequent binding open season in November to determine the appropriate design capacity of the MARC II Pipeline and the respective receipt and delivery point interconnects. FERC approval of the project will be sought once the appropriate design capacity of the MARC II Pipeline is determined. Crestwood anticipates a MARC II Pipeline in-service date in the fourth quarter of 2017. This date is subject to change based on the outcome of the binding open season.
For more information, please contact Edmund Knolle, Vice President of Natural Gas Business Development, at (832) 519-2282, email@example.com, or Tracy Halleck, Director, Northeast Marketing, at (713) 380-3024, firstname.lastname@example.org.
About Crestwood Midstream Partners LP
Houston, Texas, based Crestwood Midstream Partners LP (NYSE: CMLP) is a master limited partnership that owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. Crestwood Midstream Partners LP is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation and terminalling of NGLs; and gathering, storage, terminalling and marketing of crude oil.
About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a master limited partnership that owns the general partner interest, including the incentive distribution rights and an approximate 4% limited partner interest of Crestwood Midstream Partners LP. In addition, Crestwood Equity Partners LP’s operations include a natural gas storage business in Texas and an NGL supply and logistics business that serves customers in the United States and Canada.
This press release contains forward-looking statements within the meaning of the federal securities, including, but not limited to, Crestwood’s plans to conduct a binding open season for the MARC II Pipeline in early November and the expected in-service date of the MARC II Pipeline in the fourth quarter of 2017. Crestwood believes that its expectations and forecasts are based on reasonable assumptions. No assurance, however, can be given that such expectations and forecasts will prove to have been correct. A number of factors could cause actual results to differ materially from the expectations and forecasts, anticipated results or other forward-looking information expressed in this press release, including risks and uncertainties regarding future results, capital expenditures, liquidity and financial market conditions, insufficient cash from operations, adverse market conditions and governmental approvals and regulations. For a more complete list of these risk factors, please read Crestwood’s filings with the SEC, which are available on Crestwood’s Investor Relations website at www.crestwoodlp.com or on the SEC's website at www.sec.gov.