The assets had been owned by Continuum Energy Services for more than 10 years
North-American bio-fuel marketer Eco-Energy has acquired southern Appalachian natural gas gathering, processing, and terminal assets from Continuum Energy Services for an undisclosed amount.
The assets include the Stone Mountain gathering pipeline system, the Stone Mountain processing facility and the Stone Mountain rail terminal, which were owned by Continuum Energy Services for more than 10 years.
Eco-Energy’s EVP of Development Brian Simpson said: “Eco is looking forward to growing our natural gas business with this new asset. Stone Mountain will be a strategic foothold in the Southern Appalachian market that complements our commercial marketing platform.
“Eco Energy is looking forward to our partnership with the current producer Magnum Hunter Production (a division of Montage Resources). We have worked hard to align incentives that benefit both companies and we look forward to adding new suppliers to the system as well.”
Stone Mountain gathering system consists of in excess of 966km of gathering pipelines
The Stone Mountain gathering system consists of in excess of 966km of gathering pipelines that spread across US states of Kentucky, Tennessee, and Virginia.
The design capacity of the system is 60,000 Mcf/d and it can accumulate gas from more than 800 wells.
The wells supply the cryogenic processing facility before interconnecting with the East Tennessee pipeline which provides an uplift in value to the surrounding production.
The Stone Mountain cryogenic processing plant has a capacity of 25,000 Mcf/d with a pipeline connection to the Stone Mountain liquids terminal. To supply the local market with the products, the liquids terminal is designed to handle y-grade, propane, and butane and has 24 railcar spots with access to the Norfolk Southern railroad and 3 trucks bays.
Montage Resources CEO John Reinhart said: “We are pleased to be working with the team at Eco-Energy and the expanded natural gas marketing capabilities they provide.”
Eco-Energy is one of the largest ethanol marketing companies in North America with over $4bn (£3.2bn) in sales and handling over 14% of North American ethanol.