July 5, 2011
/PRNewswire/ -- Bluestone Gathering today announced the signing of a long-term agreement with Southwestern Energy Services Company to build and operate a natural gas gathering system in
Susquehanna County, PA
Broome County, NY
Bluestone, a wholly-owned subsidiary of DTE Energy, will deliver natural gas from the Marcellus Shale formation to the Millennium Pipeline in
Broome County, NY
and to Tennessee Pipeline in
-based Southwestern Energy Services, a wholly owned subsidiary of Southwestern Energy Company, is the primary customer for Bluestone.
The project is comprised of approximately 37 miles of 16"/20" diameter pipeline and will include many miles of high and low pressure smaller diameter pipeline for the in-field gathering system. Bluestone's initial capacity will be over 250,000 dth/day to both the Millennium and
pipelines and is projected to be in-service in the second quarter of 2012. DTE Energy plans to spend more than
over the next five years on both the Bluestone gathering lateral and in-field gathering system.
"We are excited about the opportunity to work closely with Southwestern Energy Services Company on this Project," said
, President of DTE Energy's Gas Storage and Pipeline Company. "Southwestern has demonstrated its capabilities through its world-class operations in the Fayetteville Shale. They are now leveraging this expertise to develop a substantial position in the Marcellus Shale."
Additionally, Millennium Pipeline has approved its first two expansions slated to be in-service in late 2012 and late 2013. These two expansions are expected to increase Millennium's capacity from 525,000 dth/day to approximately 825,000 dth/day by adding two compressor stations. DTE Energy owns 26.25% of Millennium Pipeline.