PROJECT BACKGROUND
INERGY, L.P.
And
“THE STAGECOACH GAS STORAGE FACILITY”
On
August 9th, 2005, Inergy L.P. acquired the membership interests
in Central New York Oil And Gas Company who owns and operates the
Stagecoach Natural Gas Storage Facility. Inergy is excited to own
and operate this world class gas storage facility. Stagecoach is
one of over 400 underground natural gas storage facilities in the
US. Stagecoach is the eastern most gas storage in the US and is
connected to Tennessee Gas Pipeline’s (TGP) 300 Line, a “long
haul” pipeline which transports gas from South Texas and the
Gulf of Mexico all the way to the New York City metropolitan area.
Stagecoach is an interstate facility
certificated by the Federal Energy Regulatory Commission. The natural
gas is stored about 5,000 feet below ground in the sandstone rock
formation of two depleted natural gas reservoirs. In addition to
the reservoirs, the facility also includes the Compressor Station,
Interconnecting Pipeline System, Ten Horizontal Storage Wells, and
a115 kV Switch Station and Power Line.
Stagecoach is a “High Performance,
High Deliverability” storage field capable of several injection
and withdrawal cycles per year. The total available gas storage
volume of the Stagecoach Facility is approximately 12 billion cubic
feet (enough to supply 150,000 households with gas for a year).
Just like a commercial warehouse where
you might store furniture, CNYOG sells storage space for natural
gas. CNYOG’s customers for this space are the local distribution
companies that bring natural gas to communities in New York, New
Jersey and the Northeast United States, such as Valley Energy Gas
in Sayre, Pennsylvania. CNYOG has sold 100% of its available storage
space to its customers and these customers are requesting additional
space.
Stagecoach Storage Phase II Expansion
& North Lateral Project
CNYOG owns rights to four additional
reservoirs near the existing complex that are capable of storing additional
supplies of natural gas. CNYOG is currently utilizing these reservoirs to add
approximately 12 billion cubic feet of storage space to its
Stagecoach Facility. CNYOG has already pre-sold 100% of this planned
storage space to its customers.
This project could include the drilling
of 7-10 additional storage wells in the four reservoirs along with
approximately 7 miles of additional pipeline and appurtenant facilities.
The proposed expansion may also connect to the Millennium Pipeline
through the addition of approximately 10 miles of connecting pipeline.
Connecting to Millennium will give Stagecoach access to supplies
of natural gas originating in Canada further diversifying and optimizing
supply choices for its customers. The existing Compressor Station
and Power Line will be utilized to support the expanded well and
pipeline facilities.
The original construction of the Stagecoach
Facility provided significant economic benefit to the citizens of
Tioga County during construction as a result of construction jobs
and the expenditures by contractors for local supplies and services.
It is anticipated that the expansion of this facility will have
similar benefits to both Tioga County, NY and to Bradford County,
PA as the expansion crosses into Pennsylvania.
Natural gas storage facilities provide
local distribution companies and other users a reliable supply of
gas. Furthermore, these distributors and users can manage the cost
of gas by buying and storing when prices are low and withdrawing
from storage when prices are high. This optimization helps to reduce
the cost of gas and power to all homes and businesses that use either
or both.
