Pennant Midstream Announces $60M Pipeline
NEW MIDDLETOWN, Ohio -- Pennant Midstream LLC, a joint venture between NiSource Midstream Services and Hilcorp Energy Co. subsidiary Harvest Pipeline Co., announced this morning that work has begun on a $60 million pipeline that would connect two major processing plants in this region of the Utica shale.
Pennant, which is building a $150 million cryogenic processor in Springfield Township, plans to construct a 12-inch, 38-mile pipeline connecting that plant to the UEO Kensington plant in Columbiana County, the company said.
"The construction of new infrastructure is critical to unlocking the potential of the Utica shale play in Ohio," said Jimmy D. Staton, CEO of Columbia Pipeline Group and NiSource Midstream Services. "This partnership will not only provide a key link in that infrastructure, it will provide economic-related benefits for companies and residents of Ohio and the Appalachian basin."
The new pipeline will have the capacity to deliver 90,000 barrels of NGLs a day to the UEO Kensington plant in Columbiana County, a joint venture between M3 Midstream, Access Midstream and EV Energy Partners.
The project would connect Pennant's $300 million Hickory Bend gathering and processing network and UEO Kensington's $900 million network, which stretches from Columbiana County to Harrison County.
Pennant reports that the new pipeline is now under construction, and work is expected to be complete by July 2014. The new line will initially deliver NGLs – that is, gas that can be converted into liquids such as ethane, butane and propane – to the UEO Kensington site and then transported along UEO's existing lines to a fractionation plant in Harrison County.
"We are delighted to be a part of this critical project in the Utica shale, particularly with our partners at NiSource Midstream Services, who have a proven track record in midstream operations," added Steve Jacobs, president of Harvest Midstream. "This is an important milestone in advancing the development of the Utica shale formation in Ohio."
Houston-based Hilcorp has actively developed wells in the northern tier of the Utica, especially in Poland Township in Mahoning County. The company's drilling operation at Republic Service's Carbon Limestone Landfill site has secured 12 permits for wells there, according to records from the Ohio Department of Natural Resources.
Chesapeake Energy Corp., based in Oklahoma City, is the primary oil and gas company operating in southern Columbiana County and Carroll County, and is contracted with UEO to process the natural gas produced from wells in this region.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.