Flows First Gas into Newly Constructed Millennium Pipeline

Inergy, L.P. (Nasdaq:NRGY) announced today that it has placed into service its newly constructed North Lateral pipeline. The 10-mile long 20” pipeline connects the 26.35 Bcf Stagecoach natural gas storage facility to the newly constructed Millennium Pipeline providing a key source of supply to markets served by Millennium. Stagecoach can provide up to 500 mmcfd of supply into Millennium from storage volumes or volumes wheeled from Tennessee Gas Pipeline Company’s (“TGP”) 300 Line through Stagecoach.

“The commencement of commercial operations between Stagecoach and Millennium marks an important step in Inergy’s development of an integrated Northeast gas infrastructure hub,” said John Sherman, President and CEO of Inergy. “The connection of the Stagecoach North Lateral pipeline significantly enhances the strategic value of Stagecoach in the Northeast natural gas storage and transmission infrastructure.”

Stagecoach has firm contracts for 200 mmcfd of deliveries through the North Lateral pipeline tied to existing contracted storage capacity. Stagecoach also offers an interruptible wheeling service to shippers seeking to move volumes from TGP to Millennium or from Millennium to TGP. This service provides supply and market diversity, flexibility, and reliability to those that desire to take advantage of upstream and downstream opportunities. Stagecoach has also received requests for 75 mmcfd of new wheeling service to begin immediately.

“We at Millennium are excited to go into commercial operations and are looking forward to a long relationship with all of our interconnected pipeline and storage providers. Inergy’s gas storage solutions in the Northeast, including Stagecoach Gas Storage, provide substantial new additional supply options and increased operational flexibility that will benefit our customers,” said Dick Leehr, President of Millennium Pipeline.

The Millennium Pipeline is expected to be a key energy supply source delivering additional supplies of natural gas to New York and the Northeast markets.

Inergy also announced today that it has been granted its Section 7(c) Application for Certificate of Public Necessity by the Federal Energy Regulatory Commission (“FERC”) for the expansion of the Thomas Corners natural gas storage facility. The certificate authorizes Inergy to construct and operate the Thomas Corners facility, with 7 Bcf of working gas capacity, under market-based rate authority.