Ergon Inc., Jackson, Miss., has announced plans to expand processing capabilities of its subsidiaries’ operations in the Appalachian basin to support growing condensate and NGL production from the Marcellus and Utica shale regions.
Current expansion plans include a total of 20,000 b/d in regional condensate stabilization capacity, which is designed to lower the vapor pressure of condensate to make it eligible for ultimate marketing, Ergon said.
The company said it will start up 10,000 b/d of condensate stabilization capacity at its Marietta, Ohio, river terminal during this year’s fourth quarter, with another 10,000 b/d to be added to its Newell, W.Va., operations in 2015.
Ergon also plans to install capacity at its 23,000-b/d refinery in Newell in 2016, but a specific volume for the capacity expansion was not disclosed.
Over the past 2 years, Ergon’s subsidiaries—which include Ergon–West Virginia Inc., Ergon Oil Purchasing Inc., Ergon Terminaling Inc., Ergon Trucking Inc., and Magnolia Marine Transport Co.—have spent more than $75 million collectively in expanding tankage as well as enhancing crude and condensate gathering capabilities in the Appalachian basin, the company said.
“These investments complement our existing capabilities in the Appalachian basin and further enhance our ability to support drillers and producers in the growing condensate and NGL markets,” said Robert Lampton, president of supply and distribution for Ergon.
In addition to the Newell refinery, Ergon’s holdings in the Appalachian basin include a crude oil and condensate pipeline, six crude oil terminals, a trucking fleet, as well as boating and barging services.