Oil and gas midstream operators, Columbia Pipeline Group, Inc.CPGX and Columbia Pipeline Partners LP CPPL , announced that their subsidiary - Columbia Gas Transmission, LLC - has placed a customer demand-driven pipeline project into service. It is called the East Side Expansion Project.
The company received the Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission ("FERC") on Dec 18, 2014 and began construction in the spring of this year.
The project included the installation of two natural gas pipelines in Chester County, PA and Gloucester County, NJ, each spanning about 9 miles. The pipeline expansion also involved installation of horsepower compressor units at Columbia Pipeline's compressor stations in Pennsylvania counties.
East Side Expansion creates additional capacity of 312 million cubic feet per day on the Columbia Pipeline's system and is its landmark project, contrived to meet the needs of both producers and end users over the coming years.
Houston-based Columbia Pipeline Group, which was separated from its parent, NiSource Inc. NI , in Jul 2015, is currently on an expansion mode, projecting to triple its scale of operations over the next five years.
The FERC recently accepted Mountaineer Xpress, a pipeline project by Columbia Pipeline Group and Columbia Pipeline Partners, for a pre-filing process. The $2 billion Mountaineer XPress Project will provide midstream facilities from Marcellus and Utica production areas to the markets served by Columbia Gas Transmission and Columbia Gulf Transmission.
Columbia Pipeline Group also won FERC approval to commence construction on the Cameron Access Project, a natural gas infrastructure project in Southwest Louisiana. The project will include improvements to Columbia Gulf's existing pipeline system, construction of a new compressor station and the installation of a roughly 26-mile greenfield pipeline.
With a number of projects under the belt and a planned investment of over $10 billion lined up for the next few years, Columbia Pipeline Group may see its earnings grow at a healthy pace once the projects start coming online.
Columbia Pipeline Group currently has a Zacks Rank #3 (Hold). VTTI Energy Partners LP VTTI is a favorably ranked stock in the oil and gas space, carrying a Zacks Rank #2 (Buy).
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