NGAS Resources and Seminole have announced plans for the joint construction and co-ownership of a natural gas processing plant near Rogersville and a separate natural gas treatment facility in northern Christian County, Kentucky.

The Rogersville processing plant will be located near an interconnection with the East Tennessee natural gas interstate pipeline system. The plant will extract natural gas liquids from gas production serviced by the NGAS gathering system.

On-site construction of the Rogersville plant is expected to start in the next few weeks upon receipt of necessary permits, with a scheduled completion date near year-end. Designed for scalable capacity, the plant can initially process up to 25,000Mcf per day, which can be increased to accommodate forecasted production growth and relief of constrained regional supplies.

When complete, the plant will be operated and managed by Seminole Energy Services and co-owned by NGAS’s operating subsidiary, Daugherty Petroleum.

William Daugherty, president and CEO of NGAS Resources, said: This plant will significantly enhance our company’s ongoing development and growth plans in southern Appalachia, while also increasing supply options and reliability to ETN shippers and customers. We look forward to the relationship with Seminole and to leveraging their expertise in processing and treating facilities.

Robert Rosene, Jr., president of Seminole Energy Services, said: We are excited to have the opportunity to work with NGAS on this project. It is Seminole’s goal to become a leading provider of midstream services in the Appalachian Basin, as well as to extend our retail and wholesale natural gas marketing services to customers in the mid-Atlantic and northeast. The Rogersville processing plant is an important step for us in executing that strategy.