NiSource, Hilcorp form JV for Utica shale production

By OGJ editors

NiSource Inc. unit Midstream & Minerals Group LLC, Merrillville, Ind., has formed a joint venture with affiliates of Hilcorp Energy Co., Houston, a privately owned oil and gas exploration and development company. The JV will build natural gas gathering and NGL processing for production in the Utica shale of northeast Ohio and western Pennsylvania.

Phase 1 of the venture's investment, amounting to about $300 million, is planned for later this year.

As part of the agreement, NiSource will participate in a separate JV with Hilcorp to develop combined acreage in the Utica and Point Pleasant shale formation in northeast Ohio and western Pennsylvania. NiSource will participate in the joint venture as a “nonoperating working interest owner in the total acreage position,” it said. Hilcorp will operate and manage development of the combined acreage.

Pennant Midstream LLC, the new midstream JV, will initially invest in construction of 50 miles of 20-in. gathering in northeast Ohio and western Pennsylvania. In addition, Pennant will invest in construction and installation of a cryogenic NGL processing plant in Ohio with initial capacity of 200 MMcfd.

NiSource Midstream Services LLC will operate the system, which initially will provide about 400 MMcfd of both wet and dry gas gathering, with expansion anticipated based on production in the area.

The Hilcorp-NiSource upstream JV will anchor the project with a long-term gathering and processing agreement, while additional capacity will be marketed to other producers in the area, said the NiSource announcement. The project is to be in service by third-quarter 2013.

Pennant is also reviewing multiple downstream NGL options with several parties, including development of its own fractionation, the company said.

Related Articles

EPA proposes voluntary methane reduction program for gas industry

07/24/2015 The US Environmental Protection Agency proposed a voluntary methane reduction program for the natural gas industry that would allow companies to ma...

EQT reports high IP from Utica dry gas well

07/24/2015 EQT Corp., Pittsburgh, said a deep, dry gas Utica well averaged 72.9 MMcfd with an average flowing casing pressure of 8,641 psi during a 24-hr deli...

Gazprom Neft advances Moscow refinery revamp

07/23/2015 JSC Gazprom Neft has gained final approval from Russian government regulators to begin construction on its long-planned combined oil refinery unit ...

Contract let for Chinese grassroots petrochemical project

07/23/2015 Ningxia Baota Chemical Fiber Co. Ltd. (NBCF), a subsidiary of privatized Ningxia Baota Petrochemical Group Co. Ltd. (NBPG), has let a contract to H...

UAE easing gasoline, diesel price controls


The United Arab Emirates is moving prices of gasoline and diesel toward deregulation effective Aug. 1.

Joint venture plans grassroots refinery for North Dakota

07/21/2015 Quantum Energy Inc., Tempe, Ariz., said it will form a joint venture with Native Son Holdings LLC (NSH), The Woodlands, Tex., to build North Dakota...

PDVSA plans late-July restart for Amuay refinery’s FCCU

07/20/2015 Repairs remain under way on the fluid catalytic cracking unit (FCCU) at Petroleos de Venezuela SA’s (PDVSA) 645,000-b/d Amuay refinery in northwest...

EPA needs to improve oversight of fracing with diesel, OIG report says

07/20/2015 The US Environmental Protection Agency needs to improve its oversight of hydraulic fracturing using diesel fuels and address any compliance issues,...

URTeC: Shell’s Hackbarth says unconventional innovation begins with data

07/20/2015 Operators should resist the impulse to pull back on investments in technology despite a down oil market, said Claudia J. Hackbarth, manager, unconv...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

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
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

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.


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