Inergy LP announced that its wholly owned subsidiary, Inergy Midstream, has executed a definitive agreement to purchase the Seneca Lake natural gas storage facility in Schuyler County, New York, (Seneca Lake) and two related pipelines for about $65 million from New York State Electric & Gas Corporation (NYSEG).
Seneca Lake is an approximately 2.0 billion cubic feet (Bcf) underground salt cavern storage facility on Inergy’s US Salt property outside Watkins Glen NY, and has a maximum withdrawal capability of 145 MMcf/day and maximum injection capability of 75 MMcf/day. It is connected to the Dominion Transmission System via the 16-inch, 20-mile Seneca West Pipeline and indirectly to the city gate of Binghamton NY via the 12-inch, 37.5 mile Seneca East Pipeline, which runs within about four miles of Inergy’s Stagecoach North Lateral interconnect with the Millennium Pipeline.
Seneca Lake began commercial operation in 1996 and at close of the acquisition is expected to be contracted with a weighted average maturity of its firm storage capacity extending to 2015. The acquisition is subject to customary closing conditions and regulatory approvals. Inergy anticipates closing the transaction by mid-2010.
Headquartered in Kansas City MO, Inergy serves nearly 800,000 retail customers from more than 300 customer service centers throughout the United States. The company also operates a 40-Bcf natural gas storage business; a liquid petroleum gas storage business; a solution-mining and salt production company; and a propane supply logistics, transportation, and wholesale marketing business that serves independent dealers and multi-state marketers in the United States and Canada.