EnLink Midstream plans new condensate pipeline in Ohio River Valley

EnLink Midstream plans to construct a new 45-mile, eight inch condensate pipeline and six natural gas compression and condensate stabilization facilities that will service major producer customers in the Utica Shale, including Eclipse Resources, officials said on Monday.

The total investment for the expansion project is over $250 million, roughly doubling the capital EnLink Midstream has invested in the Ohio River Valley to more than $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 CEO.

“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," he continued. "By further enhancing our midstream capabilities, we will provide multiple take-away options for stabilized 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 stabilization facilities, will create significant value for our customers by providing them access to premium priced markets.”

As a component of the project, EnLink has entered into a long-term, fee-based agreement with Eclipse Resources for compression and stabilization services and for the purchase of stabilized 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 stabilized condensate pipeline will connect to EnLink's existing 200-mile pipeline in eastern Ohio and West Virginia, providing producer customers in the region access to premium market outlets through the 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. EnLink expects to hold an open season for the pipeline in the fall of 2014.

EnLink will also build and operate six natural gas compression and condensate stabilization facilities in Noble, Belmont, and Guernsey counties. Upon completion, the facilities will have a combined capacity of approximately 560 MMscfd of natural gas compression and approximately 41,500 bpd of condensate stabilization.

EnLink expects the first two compression and condensate stabilization facilities to be operational in the second half of 2014 and the remaining four facilities to be operational by the end of 2015.

• Most Read
• Most Commented