(Reuters) - NiSource Inc (NI.N) and Hilcorp Energy Co will form a joint venture to develop their properties in the Utica-Point Pleasant shale fields of Ohio and Western Pennsylvania, the companies said on Monday.
Under the new agreements, NiSource will contribute its acreage in the fields into a venture with Hilcorp’s properties, which will be developed and operated by Hilcorp, a privately owned oil and gas producer.
The companies will also form a venture called Pennant Midstream LLC, which will construct gathering pipeline systems and a new natural gas processing complex.
The first phase of investment will amount to about $300 million and begin later this year.
Reporting By Matt Daily; Editing by Gerald E. McCormick