PVR Midstream will construct a 12-inch gathering pipeline and compression facilities with 25 million cubic feet per day of throughput capacity. This system is expected to become operational during the second quarter of 2010, with the potential for additional system extensions.
PVR Midstream’s 2010 capital investment in this system is anticipated to range from $6m to $7m, with potential future system extensions costing up to $10m. PVR Midstream expects its investment to be accretive to distributable cash flow once the system is operational.
William Shea Jr, CEO of PVR Midstream, said: “We are pleased to announce an additional gathering and related services arrangement in the Marcellus Shale of northern Pennsylvania. This project will generate fee-based revenue and is expected to be accretive to distributable cash flow by the third quarter of 2010. We will continue to look for opportunities to expand our presence in this emerging and potentially large resource play.”
Headquartered in Radnor, Pennsylvania, PVR Partners is a publicly traded limited partnership formed by Penn Virginia. PVR manages coal and natural resource properties and related assets and operates a midstream natural gas gathering and processing business.
