Nisource Midstream Services has started building its Washington County gathering system, according to Pittsburgh Business Times.
The $120 million project, funded in part by Range Resources Corp., includes gathering lines and compressor stations that will carry gas to a Columbia Gas transmission line. The system is projected to go into operation by late 2015 and will be expanded as production increases.
The system is one of several different pipelines from the Columbia Pipeline Group, which will soon be a unit spun off by NiSource Inc. One such project is the $65 million expansion of the Big Pine gathering system located in western Pennsylvania, which has been in service for 16 months. Columbia Pipeline spokeswoman Sarah Barczyk says the company didn’t plan to begin the expansion this soon, but producers are requesting expanded capacity.
Due to the calls for increased midstream capabilities, the company is planning to boost capacity to 175 million cubic feet per day and should be finished by the third quarter of 2015. The company is also trying to determine the outlook for its proposed Mountaineer Xpress transmission line that will carry gas from shale drilling operations in West Virginia, eastern Ohio and southwestern Pennsylvania. The company is predicting that the capacity will be between 750 million cubic feet and 2.5 billion cubic feet per day.
The company’s earnings release for the third quarter resulted in an encouraging amount of market interest regarding the Mountaineer Express line during its nonbinding ‘open season.’ CEO Robert C. Skaggs Jr. commented on the capital investment being put towards the project by saying that it could be substantial. He continued on to say that in terms of capacity, a comparable system would be its Rayne Xpress, WB Xpress, and Leach Xpress projects, each with capacities of between 1 billion and 1.5 billion cubic feet per day.