Energy Transfer Partners LP has announced new details regarding its plans to increase operations in the growing Marcellus and Upper Devonian production areas of Western Pennsylvania.
As part of the Revolution Project, Energy Transfer has entered into long-term gas gathering, processing and fractionation agreements with EdgeMarc Energy, according to a June 8 announcement. To facilitate these agreements, the company has purchased approximately 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.
Energy Transfer plans to construct approximately 100 miles of high-pressure 24- and 30-in. rich gas pipeline providing a total gathering system capacity in excess of 440 million cubic feet per day (MMcf/d). The Revolution Pipeline will originate in Butler County, Pennsylvania, and extend to the company’s Revolution Plant, a new cryogenic gas processing plant to be constructed in Western Pennsylvania. The Revolution Plant is expected to be in-service by the second quarter of 2017 and will allow for future processing growth for additional third party gas.
The residue gas from this plant will be delivered into Energy Transfer’s Rover interstate pipeline for deliveries to downstream markets. The natural gas liquids (NGLs) will be delivered to Sunoco Logistics’ (SXL) Mariner East pipeline system for delivery to domestic and export markets. As a result, this new system and associated facilities provide attractive incremental revenue benefits to both the Rover pipeline and SXL’s Mariner East pipeline system, while at the same time providing flow assurance for natural gas and associated NGLs from well head to end markets for producers in these areas.
The project also includes a fractionation facility that will be constructed at SXL’s Marcus Hook Industrial Complex in Marcus Hook, Pennsylvania. The fractionation facility is expected to be placed in-service by the second quarter of 2017.
The overall expected capital cost for the pipeline system and the associated facilities, which will be supported by long-term fee-based agreements, is approximately $1.5 billion.
“We are extremely pleased to be working with ETP,” said Chuck VanAllen, CEO of EdgeMarc Energy. “This project provides us with an effective gathering and processing solution for our approximately 500 laterals that will be drilled to access rich gas from the stacked Devonian and Marcellus shale formations located in Butler County, Pennsylvania and enables access to highly coveted markets for our residue gas and NGLs.”