PENNANT MIDSTREAM ANNOUNCES HICKORY BEND CRYOGENIC PROCESSING PLANT READY FOR SERVICE
Plant Operation Supports Producers in the Utica Shale Play and Contributes to Shale Gas Production and Transmission in the Appalachian Basin
New Middletown, Ohio, January 6, 2014– Pennant Midstream announced that on December 31, its Hickory Bend cryogenic gas processing plant was ready to begin operation. “We are excited to announce this milestone,” said Chad Zamarin, chief operating officer of NiSource Midstream Services and president of Pennant Midstream. “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, 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 in the region, 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 (NGLs). The dry gas will be transported for delivery to homes and business across the region, and the NGLs will be shipped through a new liquid pipeline for conversion into products such as butane, ethane and propane, delivering additional value to the marketplace. Much of the liquids will be transported by way of a 38-mile NGL pipeline to a fractionation facility in Harrison County, Ohio.
The plant will support rich-gas production from Hilcorp Energy Company as well as additional producers in the area. In addition to the initial processing capacity of up to 200 million cubic feet of gas per day, the core gathering pipelines will support delivery of more than 600 million cubic feet per day.
While there is only one processing facility currently located at the 90-acre site, Pennant Midstream is preparing the land for two additional plants to meet the growing need for midstream services in the area as the Utica shale play is developed. 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.”
About NiSource Midstream Services
NiSource Midstream Services (NMS), part of the Columbia Pipeline Group (CPG), is a wholly-owned entity of NiSource Inc. (NYSE:NI), a Fortune 500 energy utility company. NiSource Midstream Services was formed to provide specific natural gas producer services, including gathering, treatment, conditioning, processing and liquids handling with a focus on the Appalachian Basin. NiSource Midstream Services is focused on meeting the infrastructure needs of both conventional and shale gas producers in a cost-effective, safe and reliable manner.
About Harvest Pipeline Company
Harvest Pipeline Company is an affiliate of Hilcorp Energy Company that owns and operates midstream assets. Hilcorp, founded in 1989, is one of the largest privately-held independent oil and natural gas exploration and production companies in the United States. Headquartered in Houston, TX, with over 1100 employees, Hilcorp has operations across the United States including the Gulf Coast of Texas and Louisiana, Northeast US and Alaska’s Cook Inlet.
About Columbia Pipeline Group
As units of NiSource Inc., the CPG companies also include Columbia Gas Transmission, Columbia Gulf Transmission, Crossroads Pipeline, Central Kentucky Transmission and Hardy Storage. Combined with CPG’s operation of Millennium Pipeline Company, the CPG companies operate about 15,000 miles of interstate natural gas pipeline and 37 storage fields, delivering over 1 trillion cubic feet of natural gas per year. For more information about Columbia Pipeline Group, please visit www.columbiapipelinegroup.com. Connect with CPG on Facebook at www.facebook.com/columbiapipelinegroup.
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