Bluestone Plans Gas Gathering System

September 2011, Vol. 238 No. 9

Bluestone Gathering has signed a long-term agreement with Southwestern Energy Services Company 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. Houston-based Southwestern Energy Services, a wholly owned subsidiary of Southwestern Energy Company, is the primary customer for Bluestone.

The project is comprised of 37 miles of 16 to 20-inch pipeline and will include many miles of 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 both the Bluestone gathering lateral and in-field gathering system.

Additionally, Millennium Pipeline has approved its first two expansions slated to be in-service in late 2012 and late 2013. These two expansions are expected to increase Millennium’s capacity from 525,000 Dth/d to 825,000 Dth/d by adding two compressor stations. DTE Energy owns 26.25% of Millennium Pipeline.

Once online, Bluestone is expected to deliver over 1 Tcf of natural gas to Millennium and Tennessee pipelines with room to expand as demand increases over time.

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