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American Midstream Plans Magnolia Pipeline Extension

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Denver-based American Midstream Partners LP announced Feb. 22 that its subsidiary is planning a 45-mile extension of the existing Magnolia Intrastate pipeline near the border of Alabama and Mississippi.

American Midstream LLC (Alabama Intrastate) is commencing a non-binding open season for the proposed Magnolia Extension to transport up to 500 million cubic feet per day (MMcf/d) of natural gas for delivery to a major interstate pipeline beginning in 2019. The open season will end on April 11.

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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.

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.

More information about the project and the open season can be found at the Magnolia Extension project site.

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