NEW MIDDLETOWN - Pennant Midstream announced that its Hickory Bend cryogenic gas processing plant is ready to begin operation.
"We are excited to announce this milestone," Chad Zamarin, chief operating officer of NiSource Midstream Services and president of Pennant Midstream, said in a prepared statement.
"As producers bring wells online and are able to flow gas to the facility, Hickory Bend will be capable of processing up to 200 million cubic feet per day. This achievement contributes to increased shale production in the Appalachian Basin and is not only critical to unlocking the potential of the Utica shale play in Ohio, it is furthering economic development in the Mahoning Valley."
NiSource Midstream Services LLC, operates Pennant Midstream in Mahoning County, which is jointly owned by Harvest Pipeline (an affiliate of Hilcorp Energy Company) and NiSource Midstream Services.
The Hickory Bend processing plant and gathering system, a $375 million investment, includes approximately 55 miles of 20- and 24-inch wet gas gathering pipeline facilities, as well as the cryogenic natural gas processing plant, which will separate dry natural gas from natural-gas liquids. The dry gas will be transported for delivery to homes and businesses across the region, and the liquids will be shipped through a new liquid pipeline for conversion into products such as butane, ethane and propane. Much of the liquids will be transported by way of a 38-mile pipeline to a fractionation facility in Harrison County.
Pennant Midstream is preparing the land for two additional plants. Zamarin said that the company is encouraged by the development of the Utica play.
"We are making a long-term investment in midstream infrastructure in Ohio that, in the end, could equal over $1 billion," Zamarin's statement reads.