American Midstream Partnersannounced that American Midstream LLC is commencing a non-binding open season for a proposed 45-mile extension of the Magnolia Intrastate pipeline to transport up to 500,000 Dth/d of natural gas for delivery to a major interstate pipeline beginning in 2019. The non-binding open season will commence on February 22, 2016 and terminate at 6:00pm CT on April 11, 2016.
The proposed Magnolia Extension would connect the existing Magnolia Intrastate pipeline to Tennessee Natural Gas Pipeline’s 500 Line, providing transport of natural gas under 20-year, firm transport agreements to Williams’ Transco pipeline through an existing interconnect. The proposed pipeline is intended to offer supply diversity to growing demand areas in the Southeast market, and specifically, address infrastructure constraints associated with the rapid development of natural gas from the Marcellus and Utica Shale formations in the Appalachian Basin. The anticipated in-service date for the Magnolia Extension is 2019.
Upon the close of the open season, American Midstream will evaluate service demand to determine if the proposed pipeline is economically viable and whether necessary facilities can be constructed by the proposed in-service date.