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Pennant Midstream Prepares for 2 More Processing Plants
NEW MIDDLETOWN, Ohio -- Pennant Midstream LLC is preparing land for two additional processing plants at its Springfield Township site in anticipation of greater demand for natural gas liquids across the Utica shale, the company reports.
Construction of Pennant's first cryogenic processing plant is nearing completion and is expected to come online by December 2013. A plant dedication ceremony is scheduled for Monday Oct. 28 at 11 a.m., the company says. On hand will be executives from NiSource Midstream Services, the Columbia Pipeline Group, Hilcorp Energy as well as Springfield Township and state officials.
Pennant, a joint venture between NiSource Midstream and Hilcorp affiliate Harvest Pipeline, is investing $375 million to build a new gathering and processing system that includes 55 miles of pipelines stretching from Mercer and Lawrence counties in Pennsylvania to Columbiana County. The entire system is expected to be operational by June 2014.
The company's long-term investment in midstream infrastructure in Ohio and Pennsylvania could top $1 billion, executives say.
The new cryogenic plant, under construction on 90 acres along State Line Road, takes natural gas drawn from horizontal wells in the region and chills it to a point where dry gas such as methane separates from natural-gas liquids. Those liquids are then shipped for further processing where they can be converted into products such as ethane, butane or propane.
NiSource Midstream will operate the new system, which is initially expected to provide 400 million cubic feet per day of both wet and dry gas gathering, with "significant anticipated expansion opportunities based on production activity in the area."
Copyright 2013 The Business Journal, Youngstown, Ohio.
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