Inergy Announces Stagecoach North Lateral in Service

Business Wire, Dec 22, 2008

Flows First Gas into Newly Constructed Millennium Pipeline

KANSAS CITY, Mo. -- 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. Inergy previously announced that it has sold out the deliverable capacity at Thomas Corners with five-year term contracts. The Thomas Corners facility is expected to be connected to TGP's Line-400 and Columbia Gas Transmission's A-5 Line that accesses the Millennium Pipeline.

Shippers interested in obtaining a wheeling agreement through the Stagecoach North Lateral pipeline or more information on the Thomas Corners natural gas storage facility should contact Ron Happach, Vice President - Commercial Operations, at 816-714-5428 or by email, rhappach@inergyservices.com.

Inergy, L.P., with headquarters in Kansas City, Mo., is among the fastest growing master limited partnerships in the country. The Company's operations include the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. Today, Inergy serves approximately 700,000 retail customers from over 300 customer service centers throughout the eastern half of the United States. The Company also operates a natural gas storage business and a supply logistics, transportation, and wholesale marketing business that serves independent dealers and multi-state marketers in the United States and Canada.

Inergy Holdings, L.P.'s assets consist of its ownership interest in Inergy, L.P., including limited partnership interests, ownership of the general partners, and the incentive distribution rights.

This news release contains forward-looking statements, which are statements that are not historical in nature such as the expectation that Millennium Pipeline will be a key energy supply source delivering additional supplies of natural gas to New York and the Northeast markets. Forward-looking statements are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated, or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements are: weather conditions that vary significantly from historically normal conditions; the demand for high deliverability natural gas storage capacity in the Northeast; the general level of petroleum product demand, the availability of natural gas, and the price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully implement our business plan for the Stagecoach facility; our ability to generate available cash for distribution to unitholders; the outcome of rate decisions levied by the Federal Energy Regulatory Commission; and the costs and effects of legal, regulatory, and administrative proceedings against us or which may be brought against us. These and other risks and assumptions are described in Inergy's annual report on Form 10-K and other reports that are available from the United States Securities and Exchange Commission.