Inergy sees progress with long-awaited underground propane storage project

Inergy is planning to move forward later this year with a large-scale propane storage project in New York that was originally scheduled for completion in 2010.

Obtaining the necessary permits from the state’s Department of Environmental Conservation (DEC) has delayed Inergy’s push to add about 85 million gallons of underground storage to a salt facility in the Finger Lakes region, near Watkins Glen, N.Y.

The company says it expects to complete the permitting process this fall and, depending on the timing of DEC approval and other construction factors, such as the weather, have the storage site operational in 2013 – after the upcoming heating season.

The added capacity would be a major boon to the Northeast region, which is often prone to supply issues during the winter heating season.

“In six of the last 10 winters, there have been disruptions due to the lack of local supply” in New England and New York, forcing propane marketers to secure costly long-haul supply during the season that ultimately affects consumers, the company says.

Inergy says the storage project, which allows supply to be stored in the summer and available locally in the winter, will help to alleviate price spikes and protect local consumers.

Inergy has faced strong opposition from the local community, concerned about environmental and safety impacts as a result of the storage project.