Shale area expansion in the Appalachian region for Ergon

Source: Ergon, Inc.

Ergon, Inc., announced today the expansion of its subsidiary facilities and operations within the Appalachian Basin. The expansion will enable Ergon companies to handle increased liquid production as drilling increases throughout the Marcellus and Utica Shale areas.

Ergon’s refinery in Newell, West Virginia, and their terminal facilities in Magnolia and Marietta, Ohio will add additional storage tanks and infrastructure for an increase in overall storage capacity. Construction at these locations is expected to begin during the second quarter of 2012 and be completed first quarter 2013.

In addition, Ergon’s midstream companies (Magnolia Marine Transport Company, Ergon Trucking, Inc., Ergon – West Virginia, Inc., and Ergon Oil Purchasing, Inc.) will expand their logistics capabilities, adding assets that will increase their ability to gather and transport liquids throughout the eastern United States. With a larger footprint and amplified capacity, Ergon’s subsidiaries expect to build on the services they have provided in the region for over 15 years.

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