NEW MIDDLETOWN - A new $60 million, 38-mile natural gas liquids pipeline was announced Monday, planned to link to a processing plant already under construction here.
Pennant Midstream, LLC announced the construction of a 12-inch natural gas liquids, or NGL, pipeline, to connect the Hickory Bend Cryogenic Processing Plant in New Middletown to the UEO Kensington facility near Kensington, Columbiana County. It will have the capacity to initially deliver approximately 90,000 barrels a day. NiSource Midstream Services, LLC, operates Pennant Midstream, which is jointly owned by Harvest Pipeline, an affiliate of Hilcorp Energy Company, and NiSource Midstream Services.
"The construction of new infrastructure is critical to unlocking the potential of the Utica Shale play in Ohio," said Jimmy D. Staton, Columbia Pipeline Group and NiSource Midstream Services CEO. "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."
Steve Jacobs, President of Harvest Pipeline said, "We are delighted to be a part of this critical project in the development of the Utica Shale, particularly with our partners at NiSource Midstream Services, who have a proven track record in midstream operations. This project is an important milestone in advancing the development of the Utica Shale formation in Ohio."
The construction of this line enhances the Pennant gathering and processing facility to become a full-service facility in the northern Utica Shale area, offering access to wet gas gathering and processing, as well as residue gas and NGL takeaway to attractive market destinations.
The pipeline is under construction and is expected to be completed by July. The initial NGLs will be delivered to the UEO NGL pipeline originating in Columbiana County and transported via the existing UEO NGL infrastructure to the fractionator at UEO Harrison Hub in Harrison County.
NiSource Midstream Services is part of the Columbia Pipeline Group, a wholly-owned entity of NiSource Inc. Harvest Pipeline Company is an affiliate of Hilcorp Energy Company that owns and operates midstream assets.