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GreenHunter Plans Appalachian Gathering Network, Processing Facility

GreenHunter Resources Inc.said Monday that it plans to construct 34 miles of transmission and gathering pipeline in the Appalachian Basin to transport freshwater, oilfield waste and hydrocarbons to one of its barge terminals on the Ohio River, where it will also construct a processing facility to split condensates.

Last week, the company said it would form a new hydrocarbons division, GreenHunter Hydrocarbons LLC, to handle and move oil, condensate and natural gas liquids (NGL) in the Marcellus and Utica Shale plays, as volumes rise and operators look for more options to stabilize condensate and get NGLs out of the basin (see Shale Daily, June 25).

GreenHunter will receive the products at two points in southwest Pennsylvania in a liquids-rich area of the Marcellus Shale and another in northwest West Virginia, where operators are targeting both the Utica and Marcellus.

The company's equity partner, Major Pipeline LLC, will design and build the pipeline system for GreenHunter's exclusive use. Combined, the three pipelines will have a capacity of 270,000 b/d, which could eventually be expanded. GreenHunter said the new processing facility will be completed by 3Q2016, while right-of-way negotiations are underway for the pipeline system, which is also expected to be in service by 2016.

The announcement is the latest in a series of midstream projects and marketing agreements announced throughout the basin in recent weeks (see Shale Daily, June 26; June 23; June 20; May 28).

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