January 11, 2010 / 2:05 PM / 8 years ago

UPDATE 1-Inergy to buy natural gas storage facility, pipelines

* Deal worth about $65 mln

* Says facility located in Schuyler County, New York

Jan 11 (Reuters) - Inergy LP NRGY.O said its subsidiary has agreed to buy a natural gas storage facility in Schuyler County, New York, and two related pipelines for about $65 million to expand its presence in the Northeast.

Kansas City, Missouri-based Inergy said it will buy the facility and pipelines from New York State Electric & Gas Corp.

Inergy said the Seneca Lake storage facility is a 2 billion cubic feet (Bcf) underground salt cavern facility located on its U.S. salt property outside Watkins Glen, New York.

The facility has a maximum withdrawal capability of 145 million cubic feet (mmcfd) per day and maximum daily injection capability of 75 mmcf, the company said.

“The acquisition... will also significantly enhance the value of Inergy’s existing assets and is expected to increase our economic return on future expansion projects in the northeast market,” Chief Executive John Sherman said in a statement.

Shares of the company closed at $36.66 Friday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore, Editing by Dinesh Nair)

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