EnLink Midstream announces new 45 mile pipeline

The EnLink Midstream companies, EnLink Midstream Partners, LP, (the Partnership) and EnLink Midstream, LLC (the General Partner), have announced plans to construct a new 45 mile, 8 in. condensate pipeline and six natural gas compression and condensate stabilisation facilities that will service major producer customers in the Utica Shale, including Eclipse Resources. The total investment for the expansion project is over US$ 250 million, roughly doubling the capital EnLink Midstream has invested in the Ohio River Valley to more than US$ 500 million.

“This new expansion project is a major step forward for EnLink, as it enables us to build upon our existing asset platform and take advantage of the tremendous growth opportunities in the Utica Shale,” said Barry E. Davis, EnLink Midstream’s President and Chief Executive Officer. “This project is a game changer for our Ohio River Valley business and positions us in the heart of the gas and condensate production fairway. By further enhancing our midstream capabilities, we will provide multiple take-away options for stabilised condensate via our pipeline system, rail terminal and barge facility. We believe these service offerings, in addition to our extensive truck fleet and the expansion of our gas compression and condensate stabilisation facilities, will create significant value for our customers by providing them access to premium priced markets.”

As a component of the project, the Partnership has entered into a long-term, fee-based agreement with Eclipse Resources for compression and stabilisation services and for the purchase of stabilised condensate. Eclipse Resources is a leading Utica Shale focused exploration and production company that is currently running four horizontal rigs in the Utica Shale and expects to add an additional two rigs by year end.

The new-build stabilised condensate pipeline will connect to the Partnership’s existing 200 mile pipeline in eastern Ohio and West Virginia, providing producer customers in the region access to premium market outlets through the Partnership’s Bells Run barge facility and Black Run rail terminal. The pipeline, which is expected to be complete in the second half of 2015, will have an initial capacity of approximately 50 000 bpd and is expandable based on customer interest. The Partnership expects to hold an open season for the pipeline in the Fall of 2014.

ORV assets.

The Partnership will also build and operate six natural gas compression and condensate stabilisation facilities in Noble, Belmont, and Guernsey counties. Upon completion, the facilities will have a combined capacity of approximately 560 million f^t3/d of natural gas compression and approximately 41 500 bpd of condensate stabilisation. The Partnership expects the first two compression and condensate stabilisation facilities to be operational in the second half of 2014 and the remaining four facilities to be operational by the end of 2015.

In support of the project, the Partnership will leverage and expand its existing midstream assets in the region, including increasing condensate storage capacity and handling capabilities at its Bells Run barge terminal on the Ohio River. The Partnership will add approximately 120 000 bbls of above ground storage, bringing its total storage capacity at the barge facility to over 360 000 bbls. Additionally, the Partnership will increase the flexibility of its existing and new assets to handle and ship multiple grades of crude oil and stabilised condensate. The Bells Run barge terminal provides access to leading crude and condensate markets in the Utica Region and these enhancements will enable further growth in the near and long-term.

The Partnership will also utilise its Black Run rail terminal to export growing volumes of crude oil and stabilised condensate. The rail facility offers customers in the Utica Shale an existing solution to export multiple products, including light oil condensate and various grades of crude oil, at a rate of 24 000 bpd.

The new condensate pipeline and gathering system, as well as the natural gas compression and condensate stabilisation facilities, including the two stabilisation facilities announced recently for Antero Resources, represent a major expansion of EnLink Midstream’s assets in the Utica Shale. Following completion of these projects, the Partnership will own and operate over 250 miles of pipeline, 11 natural gas compression and condensate stabilisation facilities with a total capacity of approximately 1.2 billion ft³/d and 60 000 bpd, respectively, a fleet of over 110 trucks, and eight brine disposal wells.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/18082014/enlink-midstream-announces-new-45-mile-pipeline/