Boardwalk Pipeline Partners LP, Houston, (NYSE: BWP) and Southwestern Energy Company, Houston, (NYSE: SWN) have reported that their subsidiaries, Boardwalk Field Services LLC and Southwestern Energy Production Co., have reached a 15-year definitive gas gathering agreement which will involve the implementation of a new natural gas gathering system in Susquehanna and Lackawanna Counties, Pennsylvania. Boardwalk will own and operate the gas gathering system that will support Southwestern's development of Marcellus Shale gas wells in these counties.
The gathering system will cost approximately $90 million and will be made up of approximately 26 miles of 12" high pressure gas pipeline, a low pressure in-field gathering pipeline, compression and dehydration and will interconnect with Tennessee Gas Pipeline Company in Susquehanna County, Pennsylvania. The system will be built out over several years and is expected to have a delivery capacity of 275,000 Dth/day when fully constructed.
"We are excited about the opportunity to work closely with Southwestern Energy Production Company on this project," says Stan Horton, president and CEO of Boardwalk. "Southwestern is a highly-valued customer of Boardwalk and we look forward to expanding our relationship into the Marcellus Shale."
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