HOUSTON, Texas ― Units of Boardwalk Pipeline Partners and Southwestern Energy Company have agreed to construct a $90 million natural gas gathering system in the Marcellus Shale.
Boardwalk Field Services and Southwestern Energy Production Company have signed a 15-year deal for construction of the system expected to have a delivery capacity of 275,000 dekatherms per day when ready.
Under the deal, Boardwalk will own and operate the system, which will aid development of Southwestern’s Marcellus Shale gas wells in Susquehanna and Lackawanna Counties in Pennsylvania.
The gathering system will interconnect with Tennessee Gas Pipeline Company in Susquehanna County in Pennsylvania.
While Broadwalk Pipeline Partners’ shares were slightly up at $25, Southwestern Energy rose 3 percent to trade at $35.36 in early trade on the New York Stock Exchange on Monday.