Local officials say they have been given few details about the planned Tygart Valley Pipeline, a $70 million project which will transport natural gas from Marcellus Shale drilling in Barbour, Taylor and Preston counties through Randolph County and on to the Washington, D.C. and Baltimore areas.
Crestwood Midstream Partners LP of Houston, Texas, has announced that it is partnering with Mountaineer Keystone LLC of Pittsburgh to construct a 42-mile 16" natural gas gathering system. The pipeline will serve Mountaineer Keystone's Marcellus Shale development program in Northeast West Virginia.
The Tygart Valley Pipeline is expected to be completed by the fourth quarter of 2012 and will interconnect with Columbia Gas Transmission's WB Pipeline in Randolph County. Crestwood plans for the Tygart Valley Pipeline to provide Mountaineer Keystone and other area producers with access to the growing natural gas markets on the east coast.
Randolph County officials have not yet been contacted about the pipeline, however.
"That's something I've heard talked about vaguely, but nothing has come before the commission yet," Randolph County Commission President Mike Taylor told The Inter-Mountain. "We have not yet been contacted or given any information on that."
"I've only heard passing talk about it," said Randolph County Development Authority Executive Director Robbie Morris. "I've heard nothing official."
Although Mountaineer Keystone is planning to begin its Marcellus Shale drilling program in Barbour, Preston and Taylor counties within months, details on the pipeline are scarce among Barbour County officials as well.
"I haven't heard anything about it," Barbour County Administrator Chuck Foley told The Inter-Mountain Friday. "Nothing has come before the Barbour County Commission about it so far."
Crestwood said the Tygart Valley Pipeline, as currently designed, will have a total capacity of approximately 200 million cubic feet per day, which can be expanded to approximately 300 million cubic feet per day with compression. Mountaineer Keystone expects to reserve a firm capacity of 115 million cubic feet per day under a long-term, fixed-fee gathering agreement.
Crestwood is currently marketing the remaining firm capacity in the project to area producers that have been accumulating Marcellus Shale leases but have been slow to commence drilling and development due to a lack of pipeline infrastructure in the area.
"This project is an excellent entry point for Crestwood into the Marcellus Shale which is expected to become the industry's largest shale producing region over the next few years," said Crestwood's Robert G. Phillips.
Crestwood also plans to open a commercial office for this region.
Calls to Columbia Gas for this article were not returned.
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