Eco-Energy buys gathering/processing/terminal assets

Tennessee-based biofuel company Eco-Energy has acquired the Stone Mountain gathering pipeline system, Stone Mountain processing facility and the Stone Mountain rail terminal from Continuum Energy Services for an undisclosed price.

The Stone Mountain gathering system is made of up over 600 miles of gathering pipelines that span Kentucky, Tennessee, and Virginia, Kallanish Energy learns. The system has a design capacity of 60 million cubic feet per day (Mmcf/d) and collects natural gas from over 800 wells which supply the cryogenic processing facility before interconnecting with the East Tennessee pipeline.

The Stone Mountain cryogenic processing plant has capacity of 25 Mmcf/d with a pipeline connection to the Stone Mountain liquids terminal. The liquids terminal is designed to handle y-grade, propane and butane and has 24 railcar spots with access to the Norfolk Southern railroad, and three truck bays to supply the local market with product.

“Eco is looking forward to growing our natural gas business with this new asset. Stone Mountain will be a strategic foothold in the Southern Appalachian market that complements our commercial marketing platform. Eco Energy is looking forward to our partnership with the current (independent) producer Magnum Hunter Production (a division of Montage Resources),” stated Brian Simpson, Eco-Energy’s executive vice president of Development.

This post appeared first on Kallanish Energy News.