EnLink Midstream Partners LP and its general partner EnLink Midstream LLC announced plans to build a 45-mile, eight-inch condensate pipeline and six gas compression and condensate stabilization facilities in the Ohio River Valley area in the Utica Shale. The total investment for the project is more than $250 million, which brings EnLink Midstream’s capital investments in the area to more than $500 million.
As part of the project, EnLink entered a long-term, fee-based agreement with Eclipse Resources for compression and stabilization services and for the purchase of stabilized condensate.
The new pipeline will connect to EnLink’s existing 200-mile pipeline in eastern Ohio and West Virginia, which connects to its Bells Run barge facility and Black Run rail terminal. The pipeline is expected to be complete in the second-half of 2015 and will have an initial capacity of 50,000 barrels per day (bbl/d). The partnership expects to hold an open season for the pipeline in fall of 2014.
The six gas compression and condensate stabilization facilities will be built in Noble, Belmont and Guernsey counties, Ohio. Once they are completed, they will have a combined gas compression capacity of about 560 million cubic feet per day and about 41,500 bbl/d of condensate stabilization capacity. The first two facilities are expected to be completed in the second-half of 2014 and the remaining four are expected to be operational by the end of 2015.
In support of the project, the partnership plans to increase condensate storage capacity and handling capabilities at the Bells Run barge terminal, where EnLink plans to add about 120,000 bbl of above-ground storage.
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