Equitrans Midstream’s unit to buy pipeline assets in Marcellus, Utica shale
Friday, March 15, 2019
Equitrans Midstream Corp’s unit signed a deal worth $1.03 billion yesterday to take control of two pipelines that connect the Marcellus and Utica shales, according to Reuters.
EQM Midstream Partners LP will purchase a 60 percent stake in Eureka Midstream Holdings LLC and all of Hornet Midstream Holdings LLC from a fund managed by Morgan Stanley. Eureka Midstream is a 190-mile gathering pipeline system in Ohio and West Virginia that services both Utica and Marcellus production, while Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to Eureka system.
The company will pay $860 million in cash and assume $170 million of debt, as part of the deal.
Learn more: Reuters > Equitrans Midstream’s unit to buy gas pipeline assets for $1.03 billion
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.