) business division, NiSource Midstream Services, announced the
completion of the natural gas compressor upgrade project at its
Majorsville compressor facility in Dallas, W. VA. The
modernization entailed substitution of four ageing Ingersoll Rand
KVG412 compressors with next generation CAT 3606 engines using
Ariel JGC4 compressors.
The Majorsville system is a part of the first gathering and
processing infrastructure developed to tap the reserve-rich
Marcellus output in southwest Pennsylvania and northern West
Virginia. The network involves delivery of Marcellus gas by the
Majorsville station from Washington County, Pa. and from Marshall
County, W. VA to the MarkWest Liberty Majorsville processing
plant where residual gas is then transported to Columbia Gas and
Texas Eastern interstate pipeline systems.
The replacement of the new compressors has increased the
facility's capacity by 1800 horsepower thereby boosting service
reliability as well as increasing throughput volumes by 70-80
million cubic feet per day, double the previous level.
During the project, NiSource ensured that its customers do not
suffer optimizing its existing midstream assets to gather and
deliver 250,000 dekatherms per day of Marcellus gas
NiSource has lately focused on the expansion of its midstream
portfolio. This comprises the Millennium Pipeline project in
Columbia where the company placed the $45 million Minisink
Compressor station into service in the second quarter. Progress
on the West and East side expansion projects is also on
With the shale boom in the U.S, midstream infrastructure needs
have risen immensely. The pipeline systems currently in place are
ill-equipped to service the gas production explosion. NiSource's
investments in pipeline assets look well timed and will enable
the company to capitalize on the positive market dynamics.
More good news awaits NiSource as natural gas demand in North
America is expected to climb 37% by 2035 supported by the
anticipated 66% rise in dry gas production.
However, unplanned outages are a recurring risk the company
needs to watch out for. NiSource had a nasty pipeline accident in
late 2012 and is presently facing several lawsuits which might
dent its pocket.
NiSource at the moment has a Zacks Rank #3 (Hold). Other
utility operators better placed are Zacks Ranked #2 (Buy)
PNM Resources Inc.
UNS Energy Corp.
Alliant Energy Corp.
ALLIANT ENGY CP (LNT): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
PNM RESOURCES (PNM): Free Stock Analysis
UNS ENERGY CORP (UNS): Free Stock Analysis
To read this article on Zacks.com click here.