Penn Virginia to expand Marcellus gas gathering system

Penn Virginia Resource Partners will begin building natural gas pipeline extensions in the Marcellus shale in Pennsylvania, providing an outlet for producers to link to El Paso Corp.'s Tennessee Gas Pipeline and Williams Cos.’ Transcontinental pipeline for shipment to markets in the US Northeast. Penn Virginia reached transport agreements with Royal Dutch Shell PLC, Southwestern Energy, Range Resources Inc., and Inflection Energy, to underpin the extensions.

Penn Virginia plans to begin work on extending its 30-in. OD Lycoming West trunkline by 19 miles through Lycoming County and into Tioga County, Pa., within 2 weeks for completion by yearend. Penn Virginia also will build laterals for Shell and Range Resources to move gas from wellheads to Lycoming West for transport to the Transco line and by 2014 to Tennessee Gas Pipeline 300.

Under the 20-year Shell agreement, Penn Virginia will build a 24-in. OD lateral by this year’s fourth quarter, which will connect the Lycoming County system to Shell’s Texas Creek gathering system in Bradford County, Pa. Penn Virginia will complete another 16-in. OD lateral by yearend 2013 or early 2014, connecting the Lycoming County system to Shell’s Wellsboro Loop gathering system in Tioga County, Pa. Penn Virginia says these laterals will provide operational flexibility for Shell to move gas south to Transco, as well as the ability to move gas between the 24-in. lateral and Shell’s proprietary pipeline systems.

The Range Resources agreement provides for gathering, compression, and related services under terms similar to those of existing agreements, as well as construction of lateral lines and compression facilities, with a multiyear build-out schedule, staged to follow Range Resources’ drilling program.

The Inflection agreement dedicates defined acreage in Lycoming County, east of Penn Virginia’s existing Lycoming County system, to Penn Virginia, and provides Inflection with firm volume capacity and compression services, and a connection to Transco. Penn Virginia will build the gathering system in five phases designed to match Inflection’s drilling and production schedule, with construction of each subsequent phase tied to Inflection’s achieving certain well completion and production milestones.

Assuming all milestones are met, plans call for a total of 10 miles of 16-in. OD trunkline and 15 miles of lateral gathering lines, together with associated compressor stations, providing an expected total system capacity of 380 MMcfd by 2013.

The 15-year agreement with Southwestern provides for a firm take-or-pay capacity commitment in years 2 through 8, with an option to increase that commitment during this period. The agreement also provides Southwestern with interruptible capacity subject to availability.

Penn Virginia last month agreed to a $1 billion purchase of Chief Oil & Gas's Marcellus gas gathering assets (OGJ Online, Apr. 10, 2012). The company will spend about $380 million between 2012 and 2018 on natural gas infrastructure.

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected