The Utica Shale in Eastern Ohio is one of the fastest growing natural gas production areas in North America. It is part of the Upper Ordovician organic-rich black shale with thickness typically ranging from 150 to 350 feet. The thermal maturity windows are well defined within the Ohio Utica, shifting from dry gas in the east to the liquids-rich window in the west. Drilling activity is currently concentrated within the core area of eastern Ohio along the wet to dry gas trend. According to the Ohio Department of Natural Resources, Ohio’s natural gas production nearly doubled from 2012 to 2013 because of increased activity in the Utica Shale and continued development of midstream infrastructure. Utica Shale natural gas production growth was constrained before July 2013 due to limited natural gas processing capacity in the area. As a number of processing plants, including our assets, have been built and brought into service, more natural gas is being gathered from wells and processed to meet pipeline specifications, allowing natural gas to flow on interstate pipelines.
Blue Racer’s gathering system, located in southeastern Ohio and the panhandle of West Virginia, primarily handles natural gas produced from the liquids-rich portions of the Utica Shale and the southwestern portion of the Marcellus Shale and currently consists of 688 miles of natural gas gathering pipelines, including 422 miles of large-diameter (12- to 30-inch) pipelines. Blue Racer has an additional 162 miles of natural gas gathering pipelines under construction, including 92 miles of large-diameter pipelines.
As of July 31, 2015, Blue Racer had four gathering contracts with aggregate acreage dedications of approximately 211,000 acres including 48,000 acres associated with 40 dedicated well pads. Blue Racer has one volumetric gathering commitment, under which the customer pays us a fee based on a minimum throughput of 180 MMcf/d.
Blue Racer’s Natrium Complex is located in Marshall County, West Virginia on approximately 95 acres and currently consists of two recently constructed cryogenic natural gas processing plants, each of which has 200 MMcf/d of processing capacity. Natrium I became fully operational in May 2013. Natrium II became fully operational in April 2014. Blue Racer’s Natrium Complex processes rich natural gas from both the Utica Shale and the Marcellus Shale.
Blue Racer’s Berne Complex is located on approximately 238 acres in Monroe County, Ohio, and currently consists of two cryogenic natural gas processing plants, each of which has 200 MMcf/d of processing capacity. Berne I became fully operational in January 2015. Berne II was placed into service in June 2015. Blue Racer operates these plants as a single integrated facility, with common inlet and outlet points. Blue Racer owns sufficient acreage at its Berne Complex to accommodate a third processing plant should it choose to construct an additional plant on that site in the future. Blue Racer’s Berne Complex processes rich natural gas from the Utica Shale.
- 688 miles of gathering pipeline
- 800 MMcf/d of processing capacity
- 123,000 Bbls/d of frac. capacity
- 12,500 Bbls/d of condensate capacity
- 153 miles of NGL and condensate transportation
BRM (Assets Under Construction)
- 162 miles of gathering pipeline
- 200 MMcf/d of processing capacity
- 14 miles of NGL and condensate transportation