Eco-Energy Acquires Southern Appalachian Natural Gas Gathering, Processing, and Terminal Assets
Eco-Energy (www.eco-energy.com), a leading biofuel and natural gas marketing supply chain company, announces the acquisition of the Stone Mountain gathering pipeline system, Stone Mountain processing facility and the Stone Mountain rail terminal. The assets had been owned by Continuum Energy Services for over [10] years. Financial terms were not disclosed.
The Stone Mountain gathering system is made of up over 600 miles of gathering pipelines that span Kentucky, Tennessee, and Virginia. The system has a design capacity for 60,000 Mcf/d and collects gas from over 800 wells which supply the cryogenic processing facility before interconnecting with the East Tennessee pipeline. The East Tennessee interconnect provides a significant uplift in value to the surrounding production.
The Stone Mountain cryogenic processing plant has capacity of 25,000 Mcf/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 3 trucks bays to supply the local market with these premium products.
"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 producer Magnum Hunter Production (a division of Montage Resources). We have worked hard to align incentives that benefit both companies and we look forward to adding new suppliers to the system as well" stated Brian Simpson, Eco-Energy's EVP of Development.
John Reinhart, President and CEO of Montage Resources commented, "We are pleased to be working with the team at Eco-Energy and the expanded natural gas marketing capabilities they provide."
About Eco-Energy, Inc.
Eco-Energy is an integrated biofuel and natural gas company focused on marketing, trading, transportation, and distribution. Eco-Energy recently joined the Platts Marketing survey in Q4 2018 with 1.5bcf/d making Eco-Energy a top-25 natural gas marketer in the U.S. Eco-Energy is among the largest ethanol marketing companies in North America with over $4.0 billion in sales and handling over 14% of North American ethanol.
About Montage Resources
Montage Resources is an exploration and production company with approximately 218,000 net effective undeveloped acres currently focused on the Utica and Marcellus Shales of southeast Ohio, West Virginia and North Central Pennsylvania. For more information, please visit the Company's website at www.montageresources.com.
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