WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--Dec. 17, 2013--
National Fuel Gas Supply Corporation (“Supply”), a wholly owned pipeline
and storage subsidiary of National Fuel Gas Company (NYSE:NFG)
(“National Fuel” or the “Company”), has entered into contractual
agreements for all of the available firm transportation capacity
associated with its Northern Access 2015 and Westside Expansion and
Modernization (“West Side”) pipeline projects. Additionally, Seneca
Resources Corporation (“Seneca”), the wholly owned exploration and
production subsidiary of National Fuel has executed an agreement which
provides it with firm transportation for 158,000 dekatherms (“Dth”) per
day 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 Company’s (“TGP”) Niagara Expansion Project,
which is expected to begin service November 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, N.Y. Supply
has entered into a binding precedent agreement to lease 140,000 Dth per
day of firm transportation capacity for 15 years to TGP, a unit of
Kinder Morgan Energy Partners, L.P. (NYSE: KMP). 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 per day of firm
transportation capacity for 15 years, as the foundation shipper on TGP’s
Niagara Expansion Project.
“Today’s announcements reflect the further development of National
Fuel’s integrated asset base in the Marcellus Shale. We continue to make
substantial investments in both our pipeline infrastructure and
exploration and production businesses to capitalize on opportunities,”
said National Fuel’s President and Chief Executive Officer
Ronald J.
Tanski
. “As Seneca’s rapid growth continues, these long-term firm
transportation contracts are critical. The development of pipeline
capacity that provides the option of accessing higher-value markets,
including Canada, provides us with further confidence that our
development plans across our acreage will continue to grow well into the
future.”
Supply has also executed two binding precedent agreements for the entire
175,000 Dth per day of firm transportation capacity associated with its
West Side project in southwestern Pennsylvania. Range Resources –
Appalachia, LLC (“Range”) will utilize 145,000 Dth per day of the
capacity and Seneca has contracted for the remaining 30,000 Dth per day.
This project, with a November 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.
National Fuel is an integrated energy company with $6.2 billion in
assets comprised of the following five operating segments: Exploration
and Production, Pipeline and Storage, Gathering, Utility, and Energy
Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by
the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”
“may” and similar expressions, and statements which are other than
statements of historical facts, are “forward-looking statements” as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which could
cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. The Company’s expectations,
beliefs and projections contained herein are expressed in good faith and
are believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following
are important factors that could cause actual results to differ
materially from those discussed in the forward-looking statements:
factors affecting the Company’s ability to successfully identify, drill
for and produce economically viable natural gas and oil reserves,
including among others geology, lease availability, title disputes,
weather conditions, shortages, delays or unavailability of equipment and
services required in drilling operations, insufficient gathering,
processing and transportation capacity, the need to obtain governmental
approvals and permits, and compliance with environmental laws and
regulations; changes in laws, regulations or judicial interpretations to
which the Company is subject, including those involving taxes, safety,
climate change, other environmental matters, real property, and
exploration and production activities such as hydraulic fracturing;
changes in the price of natural gas or oil; impairments under the SEC’s
full cost ceiling test for natural gas and oil reserves; uncertainty of
oil and gas reserve estimates; significant differences between the
Company’s projected and actual production levels for natural gas or oil;
governmental/regulatory actions, initiatives and proceedings; delays or
changes in costs or plans with respect to Company projects or related
projects of other companies, including difficulties or delays in
obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators;
financial and economic conditions, including the availability of credit,
and occurrences affecting the Company’s ability to obtain financing on
acceptable terms for working capital, capital expenditures and other
investments, including any downgrades in the Company’s credit ratings
and changes in interest rates and other capital market conditions;
changes in economic conditions, including global, national or regional
recessions, and their effect on the demand for, and customers’ ability
to pay for, the Company’s products and services; the performance of the
Company’s key suppliers counterparties; or economic disruptions or
uninsured losses resulting from major accidents, fires, severe weather,
natural disasters, terrorist activities, acts of war or cyber attacks.
The Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date thereof.
Source: National Fuel Gas Company
National Fuel Gas Company
Analyst Contact:
Timothy J.
Silverstein, 716-857-6987
or
Media Contact:
Karen L.
Merkel, 716-857-7654