Boardwalk, Southwestern eye gas gathering system in Marcellus Shale
Boardwalk Pipeline Partners and Southwestern Energy Co. today announced that their subsidiaries, Boardwalk Field Services LLC and Southwestern Energy Production Co., have executed a 15-year, definitive gas gathering agreement.
The deal will require the construction of a natural gas gathering system in Pennsylvania’s Susquehanna and Lackawanna Counties. Boardwalk will own and operate the gas gathering system, which will support Southwestern’s development of Marcellus Shale gas wells in the two counties.
The gathering system is expected to cost approximately $90 million and will consist of approximately 26 miles of 12-in. pressure gas pipeline, a low-pressure infield gathering pipeline, and compression and dehydration systems. It will interconnect with Tennessee Gas Pipeline Co. in Susquehanna County, Pennsylvania. The system will be built over several years and is expected to have a delivery capacity of 275,000 dekatherms per day (Dth/day) when fully constructed.
“We are excited about the opportunity to work closely with Southwestern Energy Production Co. on this project,” said Stan Horton, President and CEO of Boardwalk. “Southwestern is a highly-valued customer of Boardwalk, and we look forward to expanding our relationship into the Marcellus Shale.”
Boardwalk, which is involved in the transportation, storage and gathering of natural gas, operates approximately 14,200 miles of pipeline. It also has underground storage fields with an aggregate working gas capacity of approximately 167 billion cubic feet (Bcf). Southwestern’s wholly-owned subsidiaries are involved in oil and gas exploration and production and natural gas gathering and marketing.
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