Oct 25 (Reuters) - Dominion Resources Inc has entered into a natural gas gathering service agreement in the Utica shale in Ohio, and continues to negotiate with producers for other agreements, a sign of growing interest in infrastructure to recover the area's rich oil and gas resources.
Its subsidiary Dominion East Ohio entered into a long-term agreement with M3 Ohio Gathering (Momentum), a partner in the Utica East Ohio Midstream LLC joint venture, that includes Chesapeake Midstream Development, a subsidiary of Chesapeake Energy Corp, and EV Energy Partners.
Dominion will gather 180 million cubic feet per day of gas from wells committed to M3 Ohio and transport it to the Kensington Processing Plant, presently under construction in Columbiana County by Utica East Ohio Midstream.
Chesapeake in March announced plans to build a large natural gas processing hub in eastern Ohio.
The Kensington plant aims to process up to 800 million cubic feet per day of gas and the bulk of supplies will be delivered into Kinder Morgan Energy Partners Tennessee Gas Pipeline.
Dominion will use existing pipeline assets with limited capital upgrades needed to support the project, Dominion Chief Executive Thomas Farrell said during the company's third quarter conference call on Thursday.
The project is due to come online in early 2014.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
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