First Choice Energy

Monday, July 9, 2012

$300 Million Utica Shale Deal to Begin This Year

From the Columbus Dispatch:
A sister company of Columbia Gas of Ohio announced plans today for a joint venture in the Utica shale that will include pipelines and a processing plant.  
NiSource Inc.’s Midstream & Minerals Group has formed the venture with Hilcorp Energy Co. of Houston. The project’s first phase, with an estimated cost of $300 million, will begin this year in northeast Ohio and western Pennsylvania.  
“This is a tangible example of the various upstream and midstream growth options available to NiSource across the shale-energy region,” Robert Skaggs, NiSource’s president and CEO, said in a statement. “We will continue to build our inventory of growth and investment projects as development and delineation of the shale play unfolds.”  
The terms “upstream” and “midstream” refer to the parts of oil and gas production before the finished resource gets sold into the market.  
In a related development, NiSource and Hilcorp said they will work together on a separate venture to develop the oil and gas resources on land that each company has leased in the region. Hilcorp will manage the effort.  
NiSource, based in Merrillville, Ind., is the parent company of Columbia Gas of Ohio, the utility that provides natural gas in a territory that includes central Ohio and Toledo. 
Read the rest of the article here.

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