NiSource Inc and Hilcorp have entered a strategic partnership to jointly develop the Utica Shale. The newly formed venture, Pennant Midstream, will invest $300 million in midstream infrastructure in 2012. The company will construct new gathering infrastructure and NGL processing facilities in northeast OH. In the first phase of development, the partnership will construct:
- 50-miles of 20-inch gathering pipeline facilities
- 200 mmcfd cryogenic NGL processing plant in Ohio
In a second JV, NiSource will participate with Hilcorp in developing acreage in northeast Ohio and western Pennsylvania. The acreage trading hands wasn’t disclosed, but Hilcorp will remain the operator and will manage development. The upstream JV is anchoring the midstream projects with long-term commitments.
The entire midstream project is expected to be in service in the third quarter of 2013.
Read more at nisource.com