PVR Partners to build Hess gas gathering system in US

Energy provider Hess Corporation has acquired the services of US-based PVR Partners to build, own and operate a 45-mile natural gas trunkline and associated gathering pipelines and facilities to serve its lean gas production in the Utica shale in eastern Ohio.

PVR will build a minimum 20-inch diameter trunk line with capacity to carry around 450 million cubic feet per day, as well as connections to the Texas Eastern and Rockies Express interstate pipelines. It expects the total investment to construct the new trunkline, initial gathering lines, compression stations and dehydration facilities to be between $125m and $150m.

The company plans to invest approximately $10m during the later part of 2013, $50m in the first half and $50m during the second half of 2014. The balance will be invested in 2015.

Project operations are slated to commence in late 2014. PVR aims to set up contracts with additional producers for capacity and gathering services once construction begins.

PVR general partner president and CEO Bill Shea said that the deal expands the company’s midstream business in the Utica Shale.

"We believe Hess’ 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," he added.

PVR holds midstream assets in Texas, Oklahoma and Pennsylvania. It provides gathering, transportation, compression, processing, dehydration and related services to natural gas producers.