The Star Beacon; Ashtabula, Ohio

October 1, 2013

Northeast Ohio pipeline to deliver 90,000 barrels of gas daily

By Dan Gearino
The Columbus Dispatch

CHARDON — — A Columbia Gas sister company released plans this morning to build a 38-mile pipeline that will transport natural gas liquids from Ohio’s Utica shale.

Pennant Midstream LLC said the pipeline will connect a processing plant in Mahoning County to one in Columbiana County. It will cost about $60 million and initially have the capacity to deliver 90,000 barrels per day.

This is one of several projects in northeast Ohio that intend to provide ways to get natural gas liquids - such as ethane and propane - to market. Ethane is often used in chemical manufacturing, while propane is often used for home heating and as fuel for industrial vehicles.

Pennant Midstream is operated and co-owned by a subsidiary of NiSource, which is the Indiana-based parent company of Columbia Gas of Ohio.

“The construction of new infrastructure is critical to unlocking the potential of the Utica Shale play in Ohio,” Jimmy Staton, Columbia Pipeline Group and NiSource Midstream Services CEO, said in a statement. “This partnership will not only provide a key link in that infrastructure, it will provide economic-related benefits for companies and residents of Ohio and the Appalachian Basin.”

The other co-owner of Pipeline Midstream is Harvest Pipeline Co., which is a subsidiary of Houston-based Hilcorp Energy Co. Steve Jacobs, president of Harvest Pipeline, said the project is “an important milestone in advancing the development of the Utica shale.”

The route will begin at the Hickory Bend processing plant in New Middletown in Mahoning County and it will end at the Utica East Ohio Kensington plant near Kensington in Columbiana County.

Construction has already begun on the project, with plans to finish by July 2014.