DTE Energy unit to build Marcellus gathering system

By OGJ editors
HOUSTON, July 6
-- Bluestone Gathering plans to build and operate a natural gas gathering system in Susquehanna County, Pa., and Broome County, NY.

Bluestone, a subsidiary of DTE Energy, will deliver Marcellus shale gas to Millennium Pipeline in Broome County, NY, and to Tennessee Pipeline in Susquehanna, Pa.

Bluestone's initial capacity call for more a total of than 250,000 dekatherms/day (dth/d) to the Millennium and Tennessee pipelines.

Southwestern Energy Services Co., a subsidiary of Southwestern Energy Co. in Houston, signed a long-term agreement with Bluestone, which will be DTE Energy's first gathering project outside Michigan. DTE is based in Detroit.

Bluestone project plans call for 37 miles of 16-in. or 20-in. OD pipeline scheduled to be operational second-quarter 2012. Many miles of high-pressure and low-pressure smaller-diameter pipeline will be used for an in-field gathering system.

DTE Energy, which owns 26.25% of Millennium Pipeline, plans to spend more than $250 million total over 5 years on the Bluestone gathering lateral and the field-gathering system.

Millennium Pipeline plans two expansions scheduled to be operational in late 2012 and late 2013. These two expansions involve adding two compressor stations, which will increase Millennium's capacity to 825,000 dth/d from 525,000 dth/d.

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