Under the contract, Bluestone will deliver natural gas from the Marcellus shale formation to the Millennium pipeline in Broome County New York and to Tennessee pipeline in Susquehanna, Pennsylvania.
US-based Southwestern Energy Services, a wholly owned subsidiary of Southwestern Energy Company is Bluestone’s primary customer.
The project comprises of approximately 37 miles of 16"/20" diameter pipeline and will include high and low pressure smaller diameter pipeline for the in-field gathering system.
The company’s initial capacity will be over 250,000 dth/day to both the Millennium and Tennessee pipelines.
Bluestone also plans to spend more than $250m over the next five years on both the Bluestone gathering lateral and in-field gathering system.
In addition, Millennium Pipeline has approved its first two expansions which are expected to be in-service in late 2012 and late 2013.
The expansions are expected to increase Millennium’s capacity from 525,000 dth/day to approximately 825,000 dth/day by adding two compressor stations in which DTE Energy owns 26.25% of Millennium Pipeline.
On completion, Bluestone is expected to deliver over 1 Tcf of natural gas to Millennium and Tennessee Pipeline.
