The midstream division of Penn Virginia Resource Partners, L.P., PVR Midstream, announced that it has entered into an agreement to construct and operate gas gathering pipelines and compression facilities servicing a private firm's Marcellus Shale natural gas production in Wyoming County, Pennsylvania.
PVR Midstream will construct a 12-inch gathering pipeline and compression facilities with 25 million cubic feet (MMcf) per day of throughput capacity. This system is expected to become operational during the second quarter of 2010, with the potential for additional system extensions.
PVR Midstream's 2010 capital investment in this system is anticipated to range from $6 to $7 million, with potential future system extensions costing up to $10 million. PVR Midstream expects its investment to be accretive to distributable cash flow once the system is operational.