Thursday, October 27, 2016

Two new NatGas plants moving forward in Pennsylvania

Two new natural gas processing facilities are advancing in Southwest Pennsylvania, with both expected to be operational by next year.

Jamison Cocklin reports for NGI's Shale Daily:


MPLX LP subsidiary MarkWest Energy Partners LP is building the Harmon Creek Complex in Washington County, according to spokesman Kevin Hawkins. The facility was originally announced as the Fox Complex before it was renamed. It had been put on hold, but the company is planning to bring it online sometime next year.

"We're trying to install these facilities on an adjusted-time basis with producers, that's really important to us," Hawkins said. "We want to bring facilities on when the producer needs them to accommodate the production ramp and growth profile."

Since MPLX -- the midstream master limited partnership of Marathon Petroleum Corp. -- acquired MarkWest last year, the company has said a number of projects are under review or development (see Shale DailySept. 26Dec. 1, 2015). The company has highlighted plans to expand its Hopedale, Cadiz, Bluestone, Majorsville and Sherwood facilities in Ohio, West Virginia and Pennsylvania in the coming years. Harmon Creek is a newbuild that Hawkins said is being built to support the growth of Range Resources Corp.

The facility would have 200 MMcf/d of cryogenic processing capacity and a 20,000 b/d de-ethanization facility. A pipeline would connect Harmon Creek with MarkWest's Houston Processing and Fractionation facility where natural gas liquids (NGL) could be separated.

FirstEnergy Corp. said last week that it started work on a $40 million project in Washington County to serve the power needs of Harmon Creek and another nearby processing facility announced by Energy Transfer Partners LP (ETP) (see Shale DailyOct. 20). ETP said last year it would spend $1.5 billion on 110 miles of gas gathering pipeline, a cryogenic processing plant, NGL pipelines and a fractionation facility it would call the Revolution System (see Shale DailyJune 8, 2015).

The cryogenic processing plant would be located in Washington County's Smith Township, where supervisors earlier this year approved the project for a 135-acre site. ETP could not be reached to comment about progress on the plant, but the company has said it expects the Revolution System to be operational by 4Q2017. NGLs from the Revolution plant would be delivered on Sunoco Logistics Partners LP's Mariner East pipelines to the Marcus Hook Industrial Complex near Philadelphia, where ETP also plans to build a fractionation facility.

Residue gas from the facility would be delivered to ETP's 3.25 Bcf/d Rover pipeline, which would move gas to the Midwest and Canada beginning sometime next year (see Shale DailyJuly 29). The project is being developed under long-term gathering, processing and fractionation agreements with privately-owned EdgeMarc Energy to serve its production in Western Pennsylvania.


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