The midstream services unit of NiSource Gas Transmission and Storage (NGT&S) plans to develop a wet and dry gas gathering system to serve the Utica Shale in eastern Ohio.

The project would include construction of a 90-mile large-diameter gathering system utilizing Columbia Gas Transmission's existing right of way along its north-south-running V-100 and V-138 systems, extending through Columbiana, Carroll, Jefferson, Harrison, Belmont and Monroe counties.

The project is expected to provide an initial transportation and processing capacity of 200 MMcf/d with expansion capabilities.

"Situated in the heart of the liquids-rich Utica trend, this investment supports increased shale production in Ohio and represents NiSource's commitment to being the premier provider of midstream services to both the Marcellus and Utica shale regions," said Joseph A. Blount, COO of the NiSource Midstream and Minerals Group.

In conjunction with the gathering project, NGT&S has purchased a 200 MMcf/d cryogenic gas liquids processing plant to be delivered in July, the company said Wednesday. The plant and related facilities would be located at a midpoint on the wet section of the gathering system in Harrison County to process liquids-rich gas flowing from both the north and south.

NGT&S said it would also construct a dry gas line originating from the tailgate of the processing plant that would gather additional dry gas produced in the Utica. The system ultimately is to deliver gas to multiple interconnects including Texas Eastern (Spectra Energy), Rocky Mountain Express (Kinder Morgan) and Columbia Gas.

Separately, in early February NGT&S said it was in the latter stages of developing a 90-mile pipeline in western Pennsylvania to support increased Marcellus Shale gas production. The $145 million Pennsylvania Marcellus Pipeline Project project is expected to have initial capacity of about 300,000 Dth/d with interconnects to multiple interstate pipelines when it is placed in service late this year (see Shale Daily, Feb. 3).