Under the terms of the agreement, a new natural gas gathering system will be constructed in Susquehanna and Lackawanna Counties, Pennsylvania, US with investment of $90m.
The gas gathering system will support development of Southwestern’s Marcellus Shale gas wells in the counties, and will be owned and operated by Boardwalk.
The system will be comprised of 26 miles of 12" high pressure gas pipeline, a low pressure in-field gathering pipeline, compression and dehydration and will interconnect with Tennessee Gas Pipeline firm in Susquehanna County, Pennsylvania.
Once fully constructed, the system will have a delivery capacity of 275,000 Dth/day.