Finishing the first quarter of the year, things are starting to heat up in the midstream construction market. As more producers move into the Marcellus and Utica shale plays, the gas and liquids boom continues to fuel midstream build-out.
In early March, Tulsa, Oklahoma-based Williams Cos. Inc. announced plans to develop a pipeline system to deliver natural gas liquids (NGLs) from the Marcellus and Utica to the petrochemical market on the U.S. Gulf Coast. Together with Boardwalk Pipeline Partners LP, Williams will develop the Bluegrass Pipeline which, according to the companies, will provide producers with NGL takeaway capacity of 200,000 barrels (bbl.) per day.
The Bluegrass Pipeline will provide West Virginia and Ohio producers with a connection to Boardwalk’s Texas Gas Transmission system in Hardinsburg, Kentucky, with a new largescale fractionation plant and gas liquids storage facilities in Louisiana, Williams said in a release. While subject to regulatory approvals, both companies expect the planned project to be in service by the second half of 2015. Williams did not release the amount of the initial investment.
At nearly the same time, the Crosstex Energy companies, which includes Crosstex Energy LP and Crosstex Energy Inc., formed a new company called E2 with former management of Enerven Compression Service to provide natural gas compression and condensate stabilization services to producers in the Utica and Marcellus shales. The initial investment of $50 million will aid E2 as the new company builds, owns and operates two gas gathering compressor stations and condensate stabilization assets in the Ohio River Valley, Crosstex said in a release. According to the company, these initial facilities are supported by a long-term, fee-based contract with an active producer who was not named.
MarkWest Utica EMG LLC, a joint venture between Mark- West Energy Partners LP and The Energy and Minerals Group, has agreed to provide gathering, processing, fractionation and marketing services in the Utica shale with Rex Energy Corp. According to a company release, MarkWest Utica EMG is constructing a gathering system, two large-scale processing complexes and a C2+ fractionation and marketing complex, which is expected to be in service by early 2014. The fractionation facility, when complete, is expected to be connected to an NGL pipeline that will lead to MarkWest’s NGL infrastructure in Houston, Pennsylvania, the company said. The company said it expects to begin gathering and processing Rex’s liquid-rich gas production in June.
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