Tag Archives: Utica Shale

MATCOR Offers Take on Natural Gas Liquids Production and NGL Transportation

“There is much discussion about the abundance of natural gas deposits in Marcellus Shale, and there is tremendous focus in extracting this precious resource. However, the industry’s ability to get this product to the end user is impacted by the infrastructure that currently exists.

“While rail is a means to transport natural gas, MATCOR is working with a growing number of midstream companies in expanding transmission and distribution piping networks. The key is to get product to market in a cost-effective and safe manor, and MATCOR’s cathodic protection products and services help ensure any new pipeline, regardless of the product it delivers, is in compliance and protected from corrosion.”

John Rothermel, PE

Vice President of Sales, MATCOR

Pipelines Planned for NGL Transportation Through Central Pennsylvania

At least one company is looking to take advantage of the rapid growth of natural gas liquids production from two of the largest shale regions in the nation.

Sunoco Logistics, a Philadelphia-based company that transports, terminals, and stores crude oil and refined petroleum products, recently announced that it was surveying land for a new pipeline, dubbed Mariner II East, that would connect production of natural gas liquids (NGL) from the Marcellus and Utica  shale regions of Pennsylvania, Ohio, and West Virginia to one of the company’s oil and diesel tank farms outside of Mechanicsburg.

The company also has plans to convert its existing Mariner East I pipeline, which used to carry oil and diesel fuel west, so that it carries propane and ethane east to its facility in Marcus Hook, which had also been idled.

The company bought the refinery from the former Sunoco Co. earlier this year for $60 million and is spending an unspecified amount of money to upgrade it and bring it back online as a natural gas liquids production refinery.

Sunoco Logistics is betting on the continued growth of natural gas production, of which NGLs like propane and ethane are byproducts. Natural gas production has increased in recent years thanks to hydraulic fracking, which has resulted in a larger supply that has driven prices down and has therefore, like a circle, created bigger demand for natural gas.

As a result of this process, NGL production has climbed during the last four years from 50 million to 70 million barrels per month. But, without greater avenues for NGL transportation, the increased production is moot.

Sunoco Logistics says that its plan to build a new NGL transportation pipeline, and convert an old pipeline for NGL transportation, will help create a northeast NGL hub in Marcus Hook that will help meet the demands of NGL producers and local and overseas consumers.

The Mariner East projects are only a few of the pipelines being planned by Sunoco Logistics. The company has roughly a dozen oil and gas projects on the books over the next 12 months at a cost of $1.3 billion, four times what it spent on capital expenditures each of the last four years.

MATCOR offers cathodic protection safety products and services to companies like Sunoco Logistics, which require cathodic protection equipment to maximize safety, efficiency, and capital investment in their pipeline projects.

Further Reading

Sunoco Logistics Plans Marcellus, Utica Pipeline Through Susquehanna Valley,” The Patriot News, Nov. 21, 2013.

Utica Shale – New $125M Pipeline Planned

PVR lands Hess deal to build Utica shale pipeline

PVR Partners LP, an Eastern Pennsylvania midstream company, is teaming with Hess Corp. (NYSE: HES) as it expands into the Utica Shale play in eastern Ohio.

PVR (NYSE: PVR) has been tapped to build, own and operate a 45-mile natural gas trunkline and gathering pipelines and facilities for Hess. The company is expected to have a total capital investment of between $125 million to $150 million. The project should be online in late 2014, according to a statement from PVR.

“PVR is pleased to announce this strategic expansion of our midstream business into the Utica Shale and we welcome the opportunity to serve Hess Corp., a world-class energy provider,” said Bill Shea, president and CEO of PVR, in a written statement. “We believe Hess’s selection of PVR as their midstream provider in the Utica Shale is another validation of our growing reputation for supplying reliable high-quality midstream services to meet the needs of shale gas producers.”

The project consists of a minimum 20-inch diameter trunk line with anticipated minimum capacity of 450 million cubic feet per day and connections with the Texas Eastern and Rockies Express interstate pipelines, according to PVR. Additional connections could also be added to other interstate pipelines. The project also includes constructing compression stations, dehydration and other facilities.

PVR is expected to invest $10 million in this project during the rest of 2013 and another $50 million during the first half of 2014. An additional $50 million will be invested in the second half of 2014 and the remainder in 2015, according to the company.

SOURCE: http://www.bizjournals.com/pittsburgh/blog/energy/2013/09/pvr-lands-hess-deal-to-build-utica.html

MATCOR’s Insights that Work

This is great news for the Utica Shale region with this natural gas pipeline. However, there is a large responsibility for pipeline safety, cathodic protection management and more.

MATCOR, Inc. is a leading cathodic protection and corrosion prevention engineering design firm, providing environmentally beneficial systems and services to global clients for nearly 40 years. An ISO 9001:2008 certified expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection design, engineering, manufacturing, installation, cathodic protection testing, annual surveys, maintenance and complete corrosion protection project management. We specialize in protecting the infrastructure of the oil and gas, utility, transportation and construction industries.