Energy Transfer Partners LP (ETP) entered into long-term gas gathering, processing and fractionation agreements with EdgeMarc Energy, the company said June 8 as it provided details on its Revolution Pipeline project in the Marcellus and Upper Devonian shales.
To enter the agreements, ETP bought about 20 miles of high-pressure pipeline from EdgeMarc and will build a new cryogenic gas processing plant, a new fractionator and additional gas gathering pipelines.
About 100 miles of high-pressure, 24-inch and 30-inch rich-gas pipeline will be built for Revolution, which will handle more than 440 million cubic feet per day of capacity, the company said. Revolution Pipeline will begin in Butler County, Pa., and will run to ETP’s new Revolution cryogenic gas processing plant that will be built in western Pennsylvania. The plant is scheduled to be in service by second-quarter 2017.
Additional third-party gas will be able to be processed there in the future, ETP added. The residue gas will go to downstream markets through ETP’s Rover interstate pipeline, and the NGL will go to Sunoco Logistics’ Mariner East Pipeline system for delivery to domestic and export markets.
The fractionation facility will be built Sunoco’s Marcus Hook Industrial Complex in Marcus Hook, Pa., and is scheduled to be in service by 2017’s second quarter.
The total cost for the Revolution Pipeline system and the facilities is about $1.5 billion, ETP said. Long-term fee-based agreements will support the cost.
Edgemark’s CEO, Chuck VanAllen, said Revolution Pipeline will provide gathering and processing for the company’s roughly 500 laterals that will be drilled to access the shale gas in Butler County, Pa. Residue gas and NGL will go to “highly coveted” markets, he added.
Energy Transfer Partners LP is a midstream MLP based in Dallas.
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