PVR Buys Rail-Trail Right-of-Way for Pipeline in PA

A possible new Marcellus Shale pipeline is in the works in Susquehanna County, PA (northeast region of the state). Yesterday, Penn Virginia Resource Partners (PVR) announced they signed a deal granting them a right-of-way along a the Rail-Trail from Union Dale, PA to the New York State border. The plan is to connect wells in Susquehanna County to the Tennessee Pipeline in Union Dale.

PVR is a coal and natural gas midstream company with 4,200 miles of natural gas gathering pipelines and seven natural gas processing plants. The amount to be paid for the right-of-way was not disclosed.

From the PVR press release:

Penn Virginia Resource Partners, L.P. today  announced  that it has  acquired  an option to purchase a pipeline easement  in Susquehanna County along a 28.8 mile right-of-way corridor in the Pennsylvania Marcellus Shale. PVR is currently evaluating the construction of a new natural gas gathering pipeline, with an interconnection to the Tennessee system, to serve producers in the region. The optioned easement was acquired from the Rail-Trail Council of Northeastern Pennsylvania (“RTC”), and extends  north from the Tennessee pipeline right-of-way in the town of Union Dale through the towns of Thompson and Lanesboro to the New York state line.

William H. Shea, Jr., Chief Executive Officer of PVR’s general partner, said, “We are pleased to have acquired this option as the first step in the development of a new outlet for the region’s natural gas production. The right-of-way was  originally developed for railroad use and is ideally situated for pipeline construction. Use of the existing right-of-way will allow PVR to construct the line without creating another utility corridor in the region. The community will also benefit as the payments received by RTC will enable the Council to make significant improvements to the trail.

“We expect to continue discussions with potential shippers for construction of a 24-inch mainline trunk system capable of transporting approximately 360 million cubic feet per day of production to major northeastern US consumption markets”, said Mr. Shea.*

*Penn Virginia Resource Partners (Jan 11, 2012) – PVR Partners Announces Acquisition of Marcellus Shale Pipeline Easement (PDF)