American Midstream Announces Open Season to Extend the Existing Magnolia Intrastate Pipeline
American
Midstream Partners, LP (NYSE: AMID) (“the Partnership”) announced
today that American Midstream (Alabama Intrastate), LLC (“Magnolia
Intrastate”), a wholly-owned subsidiary of the Partnership, is
commencing a non-binding open season for a proposed 45-mile extension of
the Magnolia Intrastate pipeline (“Magnolia Extension”) to transport up
to 500,000 dekatherms per day 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.
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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.
Open Season Timing and Procedures
The non-binding open season will commence February 22, 2016 and
terminate at 6:00pm CT on April 11, 2016. Requests for capacity must be
for a minimum initial contract term of 20 years from the date of first
delivery. Prospective customers are required to submit a completed
Service Request form by 6:00pm CT April 11, 2016 which can be found on
the Magnolia
Extension project site.
Prospective customers may also download a Service Request form here.
Resources and Contact
For interested parties, or those seeking more information about the
non-binding open season, please visit the Magnolia
Extension project site or contact:
Avery Plank, (713) 815-3961
APlank@AmericanMidstream.com
Director
of Commercial Development
Limitations and Reservations
American Midstream will consider non-conforming bids, but reserves all
rights to reject, in its sole discretion, any individual non-conforming
bid; provided, however, such discretion will be exercised in a not
unduly discriminatory manner.
Each prospective shipper must meet American Midstream’s credit
requirements.
In its sole discretion, American Midstream may provide periodic updates
to this open season announcement via www.AmericanMidstream.com.
American Midstream reserves the right to continue to market the Magnolia
Extension to potential shippers beyond the close of the open season to
the extent capacity remains available or can be developed on commercial
and economic terms acceptable to American Midstream in its sole
discretion.
In the event that valid service requests exceed available capacity and
cannot be accommodated by changes in project scope or design, American
Midstream reserves the right to pro-rate capacity among prospective
customers on the Magnolia Extension; provided however, that shippers
meeting the criteria of foundation or anchor shipper will have priority
for available firm capacity.
American Midstream reserves the right, in its sole discretion, to
discontinue or modify the terms of the open season or the project,
including a decision not to proceed with or construct the project
regardless of the level of interest. American Midstream also reserves
the right to deny any and all service requests that do not satisfy the
requirements set forth in this open season including any modifications
of the terms of this open season, that are incomplete, contain
additional or modified terms or are otherwise non-conforming, or are
requested by a prospective customer that is unable to meet American
Midstream’s credit requirements.
Final rates for service will be determined upon the conclusion of the
open season and are dependent on the scope and type of facilities
required to satisfy the firm service requests of customers who are
awarded capacity.
The project including this open season is subject to all applicable
rules, regulations, orders, and policies of the Federal Energy
Regulatory Commission and other applicable federal and state laws,
rules, and regulations. American Midstream reserves the right in its
sole discretion to discontinue or modify this open season to satisfy any
such applicable requirements.
About American Midstream Partners, LP
Denver-based American Midstream Partners, LP is a growth-oriented
limited partnership formed to own, operate, develop and acquire a
diversified portfolio of midstream energy assets. The Partnership
provides midstream services in Texas, North Dakota, and the Gulf Coast
and Southeast regions of the United States. For more information about
American Midstream Partners, LP, visit www.AmericanMidstream.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements
relate to, among other things, projections of operational volumetrics
and improvements, growth projects, cash flows and capital expenditures.
We have used the words "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "plan," "predict," "project," "should,"
"will," "potential," "line-of-sight," and similar terms and phrases to
identify forward-looking statements in this press release. Although we
believe the assumptions upon which these forward-looking statements are
based are reasonable, any of these assumptions could prove to be
inaccurate and the forward-looking statements based on these assumptions
could be incorrect. Our operations and future growth involve risks and
uncertainties, many of which are outside our control, and any one of
which, or a combination of which, could materially affect our results of
operations and whether the forward-looking statements ultimately prove
to be correct. Actual results and trends in the future may differ
materially from those suggested or implied by the forward-looking
statements depending on a variety of factors which are described in
greater detail in our filings with the SEC. Construction of the growth
projects described in this press release is subject to risks beyond our
control including cost overruns and delays resulting from numerous
factors. In addition, we face risks associated with the integration of
acquired businesses, decreased liquidity, increased interest and other
expenses, assumption of potential liabilities, diversion of management’s
attention, and other risks associated with growth and acquisitions, if
consummated. Please see our Risk Factor disclosures included in our
Annual Report on Form 10-K for the year ended December 31, 2014, filed
with the SEC on March 10, 2015, and our Quarterly Report on Form 10-Q
for the quarter ended September 30, 2015, filed with the SEC on November
9, 2015. All future written and oral forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the previous statements. The
forward-looking statements herein speak as of the date of this press
release. We undertake no obligation to update any information contained
herein or to publicly release the results of any revisions to any
forward-looking statements that may be made to reflect events or
circumstances that occur, or that we become aware of, after the date of
this press release.
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