Penn Virginia Resource Partners, L.P. (NYSE: PVR) has announced that they have acquired an option to purchase a pipeline easement in Susquehanna County which puts them closer to serving producers in the region.
The easement involves a 28.8 mile right-of-way corridor in Pennsylvanian Marcellus Shale and they are considering the construction of a brand new natural gas gathering pipeline. Should Penn Virginia Resource Partners choose to construct the new pipeline, it could have an interconnection to the Tennessee system.
The easement option itself is sourced from Rail-Trail Council of Northeastern Pennsylvania (“RTC”). According to PVR, the easement 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.
PVR released the following statement regarding today’s announcement, “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,” said William H. Shea, Jr., Chief Executive Officer of PVR’s general partner. “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.”
Mr. Shea also noted the following, “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.”
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.