PVR Partners to Construct Midstream Project
PVR Partners L.P. (NYSE:PVR) has announced a new midstream project involving the construction of a 45 mile natural gas pipeline in eastern Ohio. PVR will own and operate the pipeline, which will carry at least 450 million cubic feet of gas per day for Hess Corp’s Utica Shale gas wells. Hess will pay PVR based on volume of gas transported, meaning the deal will not be subject to natural gas price fluctuations.
Also included in the project are compression stations, dehydration facilities, and gathering facilities to serve Hess wells in Jefferson and Harrison Counties. The project is expected to cost between $125 million and $150 million.
Canadian LNG Exports
Many would be surprised to learn that the U.S. imports more oil from Canada than any other nation in the world. These have historically been safe imports, but as Canada boosts its natural gas production, it is looking overseas for new clients, specifically in China. And while some U.S. officials will remain bitter of this budding relationship, investors are better off capitalizing on this short window of opportunity. For more on the battle for Canadian exports, click here.
