Marathon Petroleum Corp. and Harvest Pipeline Company signed a letter of intent on Sept. 27, agreeing to jointly develop infrastructure that will facilitate transportation of hydrocarbon liquids production from the Utica Shale in eastern Ohio and western Pennsylvania.
The project will result in up to 24,000 barrels per day (bpd) of truck unloading capacity and a terminal capable of loading up to 50,000 bpd onto barges on the Ohio River at Wellsville, Ohio.
The proposed project includes modifications to MPC's existing Wellsville river terminal to accommodate the additional volume for loading onto barges, and a new truck rack to be built on property leased by Harvest Pipeline next to the MPC facility.
"With two of our refineries literally on top of the Utica shale formation, we are committed to positioning ourselves as the customer of choice for liquids production from the Utica," said George Shaffner, MPC's senior vice president of Transportation and Logistics. "This project with Harvest Pipeline Company will strengthen our competitive position, and will benefit MPC, Harvest, and our customers."
Shaffner added that the LOI with Harvest represents the second investment MPC is making toward accommodating Utica production, after its completion earlier this summer of a new truck rack capable of unloading 12,000 bpd, expandable to 24,000 bpd, at its Canton, Ohio, refinery.
"We are pleased to be working with MPC to offer solutions for producers to market their Utica and Marcellus production," said Steve Jacobs, Harvest Pipeline president. "This will help provide maximum value from oil produced in the region."
The joint project is anticipated to be complete by year-end 2013.