Crestwood Midstream Partners LP’s subsidiary Central New York Oil & Gas Co. LLC (CNYOG), which owns the North-South and MARC I pipelines and the Stagecoach storage facility, successfully concluded a non-binding open season on its proposed Marc II Pipeline. The proposed 30-mile gas pipeline would extend 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, Pa. Crestwood has received non-binding indications of interest for firm transport on the MARC II Pipeline of more than 700 million cubic feet per day (MMcf/d).
The pipeline would provide additional market access for gas received from several receipt points into the CYNOG system including the Stagecoach storage facility, gathering systems owned by Southwestern Energy Co. and Access Midstream Partners LP and both the Millennium and Tennessee Gas Pipeline gas systems. CYNOG’s current system has a receipt capacity of more than 2.5 billion cubic feet per day (Bcf/d) of Marcellus supply. A third interconnect with Access Midstream Partners’ gathering system is being added that will expand its total Marcellus supply access to about 3.3 Bcf/d in 2015. Crestwood plans to hold a binding open season for the MARC II Pipeline in early November.
Federal Energy Regulatory Commission approval will be sought once the appropriate design capacity is determined. Crestwood expects an in-service date for the MARC II Pipeline in fourth-quarter 2017. That date is subject to change based on the outcome of the binding open season.
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