National Fuel Gas Supply Corporation Announces Open Season and Plans for Appalachian Pipeline Project
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National Fuel Gas Supply Corporation ("Supply”),
the Pipeline and Storage segment of National Fuel Gas Company (NYSE:
NFG) ("National Fuel”),
has announced that it is conducting an Open Season for capacity in the
Appalachian corridor in southwestern and central Pennsylvania that will
provide transportation and storage services to key northeast market
interconnects including Ellisburg, Leidy and Corning.
The Open Season features a newly proposed pipeline system, the "Appalachian
Lateral,” to provide much-needed new
interstate pipeline infrastructure to move gas supplies produced from
the Marcellus Shale and other Appalachian producing horizons to growing
northeast markets. This Open Season will also provide shippers the
opportunity to access incremental storage capacity of 8.5 billion cubic
feet via Supply’s planned expansion of certain
of its existing underground natural gas storage fields. This storage
capacity will be offered in a complementary Open Season in the near
future.
The scope and size of the Appalachian Lateral will be determined after
the close of the Open Season. The Appalachian Lateral may serve as a
complement to Supply’s previously announced
West-to-East project, which is designed to move Rockies Express gas
supply from Ohio to the Northeast. Results from a 2007 Open Season for
the West-to-East project were robust and market interest remains strong
for new facilities to be built in this region where exploration and
production activity, particularly in the Marcellus Shale, is rapidly
increasing.
"Many of our pipeline and storage assets are
located in the heart of the Appalachian region and provide ready and
flexible opportunities for new storage and transportation services to
accommodate new production from this region, as well as growing demand
in the Northeast. We recognize the need for new facilities to serve
growing gas markets and are confident that we can develop this project
in an orderly and timely fashion. It will provide Appalachian Basin
producers with access to diverse markets, and offer gas distributors and
marketers the storage and transportation services they need to serve
their customers,” said Ronald J. Tanski,
President, National Fuel Gas Supply Corporation.
Additional information about the transportation and storage services
offered in the Open Season can be obtained at www.nationalfuelgas.com,
or by calling National Fuel’s Interstate
Marketing Department at (716) 857-7740. The Open Season will close at
11:00 a.m. (Eastern time) on Friday, September 12, 2008.
The Pipeline and Storage segment operations of National Fuel Gas Company
are carried out by National Fuel Gas Supply Corporation and Empire State
Pipeline. These companies provide natural gas transportation and storage
services to affiliated and non-affiliated companies through an
integrated system of nearly 3,000 miles of pipelines and 31 underground
natural gas storage fields in western New York and western Pennsylvania.
National Fuel Gas Company is an integrated energy company with $4.2
billion in assets comprised of the following five operating segments:
Exploration and Production, Pipeline and Storage, Utility, Energy
Marketing, and Timber. Additional information about National Fuel is
available on its web site: www.nationalfuelgas.com
or through its investor information service at 1-800-334-2188.