Project To Improve Marcellus Producers Access To High-Value Markets

October 2010 Vol. 237 No. 10

NiSource Gas Transmission & Storage and UGI Energy Services Inc. are partnering to develop a natural gas pipeline to provide Marcellus Shale producers in Pennsylvania improved access to high-value markets.

An estimated 500,000 Dth/d of transportation capacity will be made available for increased production along NiSource’s Columbia Gas Transmission pipeline system in Clearfield, Centre and Clinton counties to interconnections with Transcontinental Gas Pipeline Corp., Tennessee Gas Pipeline Company, Dominion Gas Transmission Inc., and Millennium Pipeline Company in north central Pennsylvania and southern New York, as well as connections to UGI’s Tioga/Meeker natural gas storage facilities and extensive gas distribution network.

“With the significant increase in drilling and deliverability of natural gas in the Marcellus Shale, there is a growing need for capacity to facilitate the movement of producers’ gas to downstream markets,” said Christopher A. Helms, executive vice president and group CEO for NGT&S.
Development and construction costs are expected to be shared equally by the partners. Based on extensive work completed to date, the parties expect to file preliminary plans with the Federal Energy Regulatory Commission (FERC), and to hold an open season for the project’s capacity, by the end of the year. The project is targeted to be in-service in late 2012. The partners anticipate additional expansions in the future as producers carry out their drilling plans.

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