US Dominion to build natgas fractionation plant in W Virginia

04 August 2011 22:24  [Source: ICIS news]

HOUSTON (ICIS)--US-based natural-gas producer Dominion plans to build a natural-gas processing and fractionation plant in Natrium, West Virginia, the company said on Thursday.

The Natrium site will have access to natural gas from both the Marcellus and Utica Shale regions, the company said. It will connect to Dominion Transmission's TL-404 pipeline, which was recently converted to handle wet gas.

The first phase of the project will include units that can process 200m cubic feet/day of natural gas and  fractionate 36,000 bbl/day of natural gas liquids (NGL).

The first phase is more than 90% contracted and is expected to be in service by December 2012, Dominion said.

The company is seeking additional producer commitments for the second phase of the project. Once those are secured, Dominion will expand Natrium to a total of 400m cubic feet/day of natural gas processing and 59,000 bbl/day of NGL fractionation, Dominion said.

The largest customer is Chesapeake Energy Marketing, a subsidiary of Chesapeake Energy. It has contracted for 100m cubic feet/day and has an option for capacity on the second phase.

Dominion has exercised its option with PPG Industries to buy land and locate the plant next to PPG's Natrium facility.

Many US crackers rely on NGL feedstock such as ethane and propane to produce olefins.

By: Al Greenwood
+1 713 525 2645

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