National Fuel Secures Transportation Capacity On Two Key Pipelines

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National Fuel Gas Supply Corp., a wholly owned pipeline and storage subsidiary of National Fuel Gas Co., has entered into contractual agreements for all of the available firm transportation capacity associated with its Northern Access 2015 and Westside Expansion and Modernization pipeline projects. Additionally, Seneca Resources Corp., the wholly owned exploration and production subsidiary of National Fuel has executed an agreement which provides it with firm transportation for 158,000 Dth/d to move its Marcellus Shale natural gas production to markets in Canada.
  The Northern Access 2015 Project is being constructed in conjunction with Tennessee Gas Pipeline (TGP) Co.’s Niagara Expansion Project, which is expected to begin service Nov. 1, 2015. Together, these two projects will create a pipeline path for Marcellus Shale natural gas production in Pennsylvania to an interconnection with TransCanada’s pipeline at the Canadian border located near Niagara Falls, NY. Supply has entered into a binding precedent agreement to lease 140,000 Dth/d of firm transportation capacity for 15 years to TGP, a unit of Kinder Morgan Energy Partners LP. Supply is expected to spend $67 million on this project, which involves the construction of 23,000 horsepower of compression within its system.
  Along with the completion of Supply’s precedent agreement with TGP on its Northern Access 2015 Project, Seneca has executed a binding precedent agreement with TGP for 158,000 Dth/d of firm transportation capacity for 15 years, as the foundation shipper on TGP’s Niagara Expansion Project.
  Supply has also executed two binding precedent agreements for the entire 175,000 Dth/d of firm transportation capacity associated with its West Side Project in southwestern Pennsylvania. Range Resources – Appalachia LLC (Range) will utilize 145,000 Dth/d of the capacity and Seneca has contracted for the remaining 30,000 Dth/d. This project, with a Nov. 1, 2015 in-service date, will provide Seneca and Range with access to key markets on the TGP and the Texas Eastern Transmission Pipeline systems in southwestern Pennsylvania. The total cost for this project is estimated at $74 million and involves the upgrading of approximately 23 miles of pipeline, along with the installation of 3,600 horsepower of compression.