Inergy Announces Successful Open Seasons for Northeast Pipeline Projects

Inergy, L.P. (NASDAQ: NRGY) announced today that its wholly-owned subsidiary, Inergy Midstream, LLC (“Inergy”), has received indications of interest exceeding 400% of the capacity required to construct the 43-mile Marc I Hub Line and indications of interest exceeding 600% of the capacity required to construct the North-South Project. Together these projects when completed will allow shippers to wheel/transport gas bi-directionally through up to a 36-inch pipe on a firm basis approximately 75 miles between the Millennium Pipeline in Tioga County, N.Y., and Transcontinental Gas Pipeline Corporation’s (“Transco”) Leidy Line located in Columbia County, Pa., and all points in between.

“The response to the open season exceeds our expectations, and we could not be more excited about validating the strong commercial interest in these projects,” said John Sherman, President and CEO of Inergy. “It is our objective to integrate Inergy’s uniquely positioned gas storage and transportation platform to provide gas producers, marketers, and LDCs more flexibility and reliability in accessing the premium demand markets in the Northeast. We expect these projects to deliver solid economic returns and create visible cash earnings growth for our unitholders.”

“The combination of these two projects provides critical infrastructure in the Northeast through our network of assets, which includes approximately 40 Bcf of gas storage and related pipeline interconnections,” said Bill Moler, Senior Vice President of Inergy Midstream, LLC. “Our platform with the addition of these projects will allow market participants to meet supply and demand needs by connecting the three major northeast market pipes, Inergy’s Stagecoach gas storage facility, and the prolific Marcellus Shale gas play in northeastern Pennsylvania.”

The expected in-service date for the MARC I Hub Line and the North-South Project is in the fall of 2011.

Inergy is finalizing design and route selection, plans to structure long-term binding precedent agreements with each of the interested shippers, and expects to make all the required regulatory applications later this fall.

The Marc I Hub Line and the North-South projects combined with Inergy’s previously announced 7.0 Bcf Thomas Corners natural gas storage development, the 5 million barrel Finger Lakes LPG storage development, which are expected to be operational in the Spring of 2010, and the 5 Bcf natural gas storage development opportunity at Inergy’s US Salt plant in Watkins Glen, N.Y., provide visible organic growth opportunities for the next two years.

About Inergy Midstream, LLC

Inergy Midstream, LLC, is a wholly-owned subsidiary of Inergy, L.P., and is headquartered in Kansas City, Mo. The Company owns and operates Central New York Oil And Gas Company, LLC’s Stagecoach Gas Storage Facility, which has 26 Bcf of working gas capacity; Finger Lakes LPG Storage, which includes an existing 1.5 million barrel underground salt cavern LPG storage facility as well as a development of up to 5 million additional barrels of underground salt cavern storage capacity near Watkins Glen, N.Y.; Arlington Storage Company, LLC, which is the majority owner and operates the Steuben Gas Storage Facility, a 5.7 Bcf natural gas storage facility and the sole owner of the Thomas Corners Gas Storage Facility, a 7 Bcf natural gas storage facility, which is currently being developed; and US Salt, LLC, a solution mining and salt production company.

About Inergy, L.P. and Inergy Holdings, L.P.

Inergy, L.P., also headquartered 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 40 Bcf natural gas storage business; a liquid petroleum gas storage business; a solution-mining and salt production company; and a propane 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 expectations that: (i) the Marc I Hub Line and the North-South projects will be in-service in the fall of 2011; (ii) Inergy will enter into binding precedent agreements with counterparties; (iii) Inergy will make the required regulatory applications this fall; and (iv) these projects will create visible cash earnings growth. 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 and 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 Steuben County, N.Y., facilities; 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.

Corporate news, unit prices, and additional information about Inergy, including reports from the United States Securities and Exchange Commission, are available on the Company’s Web site, www.InergyPropane.com. For more information, contact Mike Campbell in Inergy’s Investor Relations Department at 816-842-8181 or via e-mail at investorrelations@inergyservices.com.

Inergy Holdings, L.P. (MM) (NASDAQ:NRGP)
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