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PVR’s New Marcellus Exit Enters Service
Penn Virginia Resource Partners LP (PVR) has begun service on a new 30-mile, 24-inch diameter trunkline serving Marcellus Shale producers in north-central Pennsylvania with 750 MMcf/d of capacity. The capacity gives producers shipping gas out of the Marcellus a way around constraints on Tennessee Gas Pipeline’s congested 300 Line.
The Wyoming Pipeline runs from Wyoming County southward to an interconnection in Luzerne County with Williams’ Transco Pipeline. The project was acquired by PVR when it bought Chief Gathering LLC in May. Funds required for the completion of the project were included in the financing of the deal (see Shale Daily, April 11).
“The Wyoming Pipeline was a critical component of PVR’s acquisition of Chief Gathering, and the completion of the project ahead of schedule and on budget is an important milestone in the execution of our business plan in the Marcellus Shale region,” said PVR CEO Bill Shea. “Producers have contracted for initial firm transportation volumes totaling 255 MMcf/d this year. We expect initial Wyoming Pipeline volumes will exceed the firm committed take-or-pay amounts.
“The existing volumes on our Susquehanna/Wyoming gathering systems have been hampered by delivery constraints on the Tennessee Gas Pipeline 300 Line, and our ability to now deliver to Transco via the Wyoming Pipeline will increase volumes on the Susquehanna/Wyoming gathering systems by over 20%. Volumes are also expected to increase as we continue buildout of the Susquehanna/Wyoming gathering systems and connect additional wells to deliver into the Wyoming Pipeline.”
PVR said it has agreements with five producers for firm and interruptible service on Wyoming Pipeline and anticipates signing up more producers. The Wyoming Pipeline producer agreements are entirely fee based and have no direct commodity price risk, PVR said.
In February 2011 PVR began commercial operation on the first large-diameter gathering pipeline in the north-central Pennsylvania Marcellus fairway (see Shale Daily, Feb. 18, 2011).
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