A new natural-gas processing plant is operating in eastern Ohio.
The $375 million Hickory Bend cryogenic processing plants at New Middletown in Mahoning County began operations on Dec. 31, Pennant Midstream announced Monday.
“We are excited to announce this milestone,” said Chad Zamarin, chief operating officer of NiSource Midstream Services and president of Pennant Midstream. “As producers bring wells online and are able to flow gas to the facility, Hickory Bend will be capable of processing up to 200 million cubic feet per day. This achievement contributes to increased shale production in the Appalachian Basin and is not only critical to unlocking the potential of the Utica shale play in Ohio, it is furthering economic development in the Mahoning Valley.”
NiSource Midstream Services LLC operates Pennant Midstream, which is jointly owned by Harvest Pipeline (an affiliate of Hilcorp Energy Co.) and NiSource Midstream Services (part of the Columbia Pipeline Group).
The Hickory Bend gathering system includes about 55 miles of 20- and 24-inch wet gas-gathering pipelines, as well as the cryogenic natural gas processing plant, which separates dry natural gas from natural-gas liquids. The liquids will be transported via a 38-mile pipeline to a fractionation facility in Ohio’s Harrison County.
The core-gathering pipelines will support delivery of more than 600 million cubic feet per day, officials said.
Pennant Midstream is planning to add two additional processing units to the processing plant that sits on 90 acres.
It will handle natural gas from Hilcorp wells plus other drillers in eastern Ohio and western Pennsylvania.
Zamarin said that the company is encouraged by the development of the Utica play. “We are making a long-term investment in midstream infrastructure in Ohio that, in the end, could equal over $1 billion,” he said in a statement.
Bob Downing can be reached at 330-996-3745 or bdowning@thebeaconjournal.com.
