Inergy, L.P. (NYSE:NRGY) announced today that its wholly-owned subsidiary, Inergy Midstream, LLC, is conducting a non-binding open season for firm storage capacity at its Tres Palacios natural gas storage facility. The expansion capacity of up to 7 Bcf is available ahead of schedule beginning March 1, 2011, as a result of the de-brining progress made on the third cavern. The remaining 4.4 Bcf of capacity on this third cavern is expected to be available by April 1, 2011.
The Tres Palacios gas storage facility is a multi-cycle, salt dome natural gas storage field located approximately 100 miles southwest of Houston in Matagorda County, Texas. The facility includes 38.4 BCF of FERC-certificated working gas capacity, including the third cavern capacity referenced above, with planned future expansion to 47.9 BCF. The storage facility is strategically situated near the Eagle Ford Shale and is one of the largest gas-fired power generation markets in the United States.
The Tres Palacios gas storage facility is a Hub point listed on the Intercontinental Exchange (“ICE”) for natural gas transactions and together with its existing header system provides access to a combination of 10 interstate and intrastate pipelines providing significant commercial opportunities to firm storage customers. Inergy acquired the Tres Palacios storage facility in October 2010.
The non-binding open season will commence on February 9, 2011, and will close February 17, 2011.