CORRECTED-UPDATE 1-Dominion in Utica Shale natgas services deals
(Corrects 1.8 billion cubic feet to 180 million cubic feet per day in third paragraph.)
Oct 25 (Reuters) - Dominion Resources Inc has entered into natural gas gathering services agreements in the Utica Shale in Ohio, an executive said during the company's third-quarter earnings call on Thursday.
Dominion continues to negotiate with producers for other service agreements, a sign of growing interest in infrastructure to recover the area's rich oil and gas resources.
Its subsidiary Dominion East Ohio entered into a long-term agreement to provide services for some 180 million cubic feet per day(mmcf/d) of wet gas in northeastern Ohio.
The services will be provided from existing pipeline assets with limited capital upgrades to support the project, the executives said.
The project is slated to come online in early 2014.
The Ohio Department of Natural Resources through early October had issued 413 horizontal well permits to multiple producers with 176 wells drilled to date -- 35 of those wells are now producing. 24 rigs are currently on location in Ohio, Dominion said during the call.
The Utica Shale lies under the Marcellus Shale, which are both part of the Appalachian Basin, the "longest producing petroleum province in the United States," according to the U.S. Geological Survey (USGS).
The basins are thick with horizontal rock formations that hold substantial reserves of wet and dry gas trapped between the layers.
The Utica Shale contains about 38 trillion cubic feet of technically recoverable natural gas, the USGS said earlier this month.
Gas producers have descended on the area to recoup what they expect to be hundreds of billions of dollars from developing the resources. (Reporting By Jeanine Prezioso)
- Seven NATO allies to create new rapid reaction force-report
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- U.S. authorities investigate suspected threat against Obama: reports
- Putin says Russia must strengthen its economic, military position in Arctic
- California passes 'yes-means-yes' campus sexual assault bill