The new-build stabilised condensate pipeline will connect to the Partnership’s existing 321 km pipeline in eastern Ohio and West Virginia, providing producer customers in the region access to premium market outlets through the Partnership’s Bells Run barge facility and Black Run rail terminal. The pipeline, which is expected to be complete in the second half of 2015, will have an initial capacity of approximately 50,000 bbl/d and is expandable based on customer interest. The Partnership expects to hold an open season for the pipeline in the next quarter of 2014.
The Partnership will also build and operate six natural gas compression and condensate stabilisation facilities inNoble, Belmont, and Guernsey counties. Upon completion, the facilities will have a combined capacity of approximately 560 MMcf/d of natural gas compression and approximately 41,500 bpd of condensate stabilisation. The Partnership expects the first two compression and condensate stabilisation facilities to be operational in the second half of 2014 and the remaining four facilities to be operational by the end of 2015.
As a component of the project, the Partnership has entered into a long-term, fee-based agreement with Eclipse Resources for compression and stabilisation services and for the purchase of stabilised condensate. Eclipse Resources is a leading Utica Shale focused exploration and production company that is currently running four horizontal rigs in the Utica Shale and expects to add an additional two rigs by year end.
The total investment for the expansion project is over $US250 million.