Momentum to create Appalachia Gathering System in the Marcellus Shale

M3 Midstream LLC (Momentum) has signed long-term gas gathering agreements with Chesapeake Energy Marketing Inc., a subsidiary of Chesapeake Energy Corporation, and Statoil Natural Gas LLC, a wholly owned subsidiary of Statoil ASA as anchor customers on its Appalachia Gathering System (the AGS). The agreements cover certain Marcellus shale leases controlled by Chesapeake and Statoil in northern West Virginia and southwestern Pennsylvania.

The AGS will serve dry gas production areas in northern West Virginia and southwestern Pennsylvania with modern, efficient gathering infrastructure consisting of about 130 miles of large-diameter gathering pipeline spanning Washington and Greene counties, Pennsylvania, and Monongalia, Marion, and Harrison counties in West Virginia.

In order to accommodate flow from multiple producers in the area, the capacity of the gathering pipeline is anticipated to be as much as 730 MMcf per day. The project further provides both low- and high-pressure service, centralized dehydration, custom compression services, and hydrocarbon dewpoint control, as needed.

The AGS will provide access to the Texas Eastern Transmission pipeline in southern Pennsylvania, and will have the ability to provide future access to both Columbia Gas (TCO) and Dominion. Construction efforts are underway, and Momentum plans to begin providing gathering services in early 2012.

“The AGS is a perfect fit to Momentum’s skill set of bringing quality greenfield midstream services to areas in developing shale plays that lack modern infrastructure,” says Frank Tsuru, president and CEO of Momentum. “We look forward to providing exceptional gathering services to Chesapeake and Statoil, which have confirmed their confidence in the AGS and Momentum.”

Activity in the Marcellus Shale continues to increase and the AGS is expected to serve multiple producers along its anticipated route.

M3 Midstream LLC is an independent energy company formed to build, acquire, own, and operate oil and gas midstream assets in growth areas of the United States. The company provides focused services that include oil and gas gathering, compression, treating, and processing to a growing number of customers in active areas, including the Marcellus Shale.

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