Midstream Infrastructure in the Utica Shale
The initial phase of Utica East Ohio Midstream LLC’s new cryogenic separation plant in Kensington, OH started operation on July 28, 2013. This is the first operational plant in northeastern Ohio to separate methane from the natural gas liquids present in Utica’s wet gas.
The liquids from the Kensington Plant in Cambria County will be transported to a natural gas liquids fractionation, storage and rail facility near Scio in Harrison County, Ohio. The first phase of the project also includes 63 miles of gathering lines. Initially the Kensington plant will have a capacity to process 200 MMCF of natural gas per day, but phases 2 and 3 will expand the plant capacity to 800 MMCF per day.
Utica East Ohio Midstream LLC’s is a joint venture owned 49% by Access Midstream, 30% by M3 and 21% by EV Energy Partners. The entire project is expected to cost $900 million. This is first fully integrated natural gas processing and fractionation project in Ohio to be completed.
The construction of these facilities and pipelines required more than 1,700 workers, and a permanent staff of about 65 will be needed to operate the facilities.
Utica Shale Drilling Activity
Through the end of March 2013 various companies had drilled nearly 300 wells into the Utica Shale, but only 81 were listed as producing. In many cases companies have idled wells as they await completion of pipelines that will move liquid natural gas to new processing facilities being built. MarkWest, Chesapeake and others also have announced pipelines and separation plants that are under construction in the area.
More resources on midstream developments in the Utica Shale:
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