Bluestone Gathering has signed a long-term agreement with Southwestern Energy Services Co. to build and operate a natural gas gathering system in Susquehanna County, PA and Broome County, NY.
Bluestone, a wholly owned subsidiary of DTE Energy, will deliver natural gas from the Marcellus shale formation to the Millennium Pipeline in Broome County and to Tennessee Pipeline in Susquehanna.
The project is comprised of 37 miles of 16- and 20-inch pipeline and will include high- and low- pressure smaller diameter pipeline for the in-field gathering system. Bluestone’s initial capacity will be over 250,000 Dth/d to both the Millennium and Tennessee pipelines and is projected to be in-service in mid 2012. DTE Energy plans to spend more than $250 million over the next five years on the Bluestone gathering lateral and in-field gathering system.
Millennium Pipeline, of which DTE Energy owns 26.25%, approved its first two expansions slated to be in-service in late 2012 and late 2013. These are expected to boost capacity from 525,000 to 825,000 Dth/d by adding two compressor stations.
Once online, Bluestone is expected to deliver over 1 Tcf of natural gas to Millennium and Tennessee Pipeline, with room to expand as demand increases. Bluestone will be DTE Energy’s first gathering project outside Michigan.