Detroit-based DTE Energy said Thursday it struck deals with Marcellus Shale drillers Southwestern Energy Co. and Cabot Oil & Gas Corp. to expand the Bluestone Pipeline in Susquehanna County in northeastern Pennsylvania.
"The stronger than expected performance of Marcellus reserves in Susquehanna County continues to drive the need for additional infrastructure," said Richard Redmond, executive vice president, DTE Gathering and Processing, in a statement.
The rapid growth of Marcellus Shale natural gas production has outpaced the infrastructure needed to transport it.
The Bluestone capacity expansion is supported by long-term agreements with minimum term commitments ranging from 10 to 15 years.
Once in service, the expansion facilities will increase the capacity of the Bluestone Pipeline from 600,000 dekatherm a day to 975,000 Dth/day, a greater than 60 percent increase in capacity since the gathering system first came online in late 2012, according to DTE.
The 44.5 mile Bluestone Pipeline and Gathering system currently can transport up to 600,000 Dth/day combined to both the Millennium Pipeline in Broome County, N.Y., and the Tennessee Gas Pipeline in Susquehanna County, Pa.
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