By OGJ editors
HOUSTON, Apr. 20 -- In separate announcements, Dominion, Richmond, Va., said it plans to expand natural gas gathering, processing, and transportation for Marcellus shale and Appalachian production.
Dominion will install gathering, processing, and transportation for growing volumes of high-btu gas being produced in the Marcellus shale areas of Marshall and Wetzel counties, W.Va., and surrounding counties in West Virginia, Pennsylvania, and Ohio.
In cooperation with Exterran Holdings Inc., Houston, Dominion will deliver residue gas from two gas plants Exterran will build and operate in Ohio and West Virginia.
Dominion’s Marcellus 404 Project will provide firm and interruptible transportation, as well as gathering and processing, for as much as 300 MMcfd and fractionation capacity for 32,000 b/d of NGLs. The processing and fractionation will be in north-central West Virginia.
Residue gas will be delivered into Dominion Transmission's pipeline system or into one of several other gas outlets near Clarington, Ohio.
As part of the project, Dominion will convert TL-404, an existing transmission pipeline in Ohio and West Virginia, into wet-gas service. The company announcement said producers may connect directly to TL-404 or request Dominion to construct additional gathering to deliver their production to TL-404.
Plans call for the project to be phased in, providing 45 MMcfd initially and ultimately expanded to 300 MMcfd. Initial service will be available about a year after the company has received commitments from producers adequate to support the project. Processing and fractionation will be phased in “to correspond with producer needs,” said Dominion.
The company also said it will determine rates for transportation, gathering, processing, and fractionation based on what is required to support the requested service. Dominion will sell the fractionated NGLs, with net proceeds returned to producers delivering wet gas to Dominion or to those providing liquids for fractionation.
The company will confirm interest in the project by discussing with interested parties the types of service, location, quantity, contract terms, and dates by which service is desired. Once market commitment appears sufficient to support the project, Dominion will finalize project design and service agreements.
Exterran will begin immediately to design, build, and install two gas processing plants, an 8 MMcfd plant in Carlisle, Ohio, and a 10 MMcfd plant in Schultz, W.Va. The company will own and operate the two plants under a 12-year agreement with Dominion.
Commercial operation at the Carlisle plant is set for January 2011; at the Schultz plant for May 2011.
The Carlisle plant, according to the joint announcement, will allow more local gas to be processed and delivered into Dominion’s East Ohio local gas distribution system.
The Schultz plant will allow more local gas to be produced into Dominion's gathering system in West Virginia, processed there, and delivered to markets through Dominion Transmission's interstate pipeline system.