Dominion to Begin Construction on New Natural Gas Processing, Liquids Separation Facility

Dominion D recently announced that it is proceeding with its next major project in the Marcellus and Utica Shale regions, the construction of a large natural gas processing and fractionation plant along the Ohio River in Natrium, W.Va. The first phase of construction includes facilities that can process 200 million cubic feet of natural gas per day and fractionate 36,000 barrels of natural gas liquids per day. This phase of the project is more than 90 percent contracted and is expected to be in service by December 2012. "We are working to secure additional producer commitments for a second phase of the project," said Thomas F. Farrell II, chairman, president and chief executive officer of Dominion. "Once those contracts are finalized, efforts to expand the Natrium facility to process a total of 400 million cubic feet of natural gas per day and fractionate 59,000 barrels of natural gas liquids per day will be under way." The new facility is a response to the need for additional processing and fractionation capacity in the region. The rising price of oil and the low price of natural gas have shifted drilling activity in the region from the dry gas to the wet gas areas as producers look to capture the economic value of natural gas liquids. "The Natrium site is an ideal location," said Gary Sypolt, chief executive officer of Dominion Energy. "We will have the capability to access production in both the Marcellus and Utica Shale regions, and ship products via barge, rail, truck and pipe, thus offering significant value to producers."