M3 Midstream LLC, known as Momentum, announced March 31 that it has signed long-term gas gathering agreements with Chesapeake Energy Marketing, Inc. and Statoil Natural Gas LLC as anchor customers on its Appalachia Gathering System.
The agreements cover certain Marcellus shale leases controlled by Chesapeake and Statoil in northern West Virginia and southwestern Pennsylvania.
The gathering system will serve dry gas production areas in northern West Virginia and southwestern Pennsylvania with gathering infrastructure consisting of approximately 130 miles of large diameter gathering pipeline spanning Washington and Greene Counties, Pennsylvania, and Monongalia, Marion and Harrison Counties, West Virginia. In order to accommodate flow from multiple producers in the area, the capacity of the gathering pipeline is anticipated to be as much as 730 MMcf per day.
The project further provides both low- and high-pressure service, centralized dehydration, custom compression services and hydrocarbon dewpoint control, as needed. The system will provide access to the Texas Eastern Transmission pipeline in Southern Pennsylvania, and will have the ability to provide future access to both Columbia Gas (TCO) and Dominion. Construction efforts are under way, and Momentum plans to begin providing gathering services in early 2012.