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Released July 10, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Precision Pipeline LLC (Eau Claire, Wisconsin), a service provider for liquid and gas pipeline systems, is playing a key role in $1.33 billion worth of active projects that are under construction, according to Industrial Info's project database. These projects are centered around regions where demand is strong for feedstock from the Marcellus and Utica shale plays, but they are facing a string of setbacks related to development problems and regulation.

AttachmentClick on the image at right for a graph detailing Precision's active projects, by state.

The single largest project featuring Precision has fallen more than 18 months behind schedule and recently has seen its legal problems mount: Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) $1 billion Pennsylvania segment of the Mariner East 2 and 2X Pipelines, which are designed to transport 272,750 BBL/d of natural gas liquids (NGL) from the Utica and Marcellus to ETP's Marcus Hook terminal near Philadelphia, Pennsylvania, where the NGLs will be processed into butane, propane and other products for export. For more information, see Industrial Info's project report.

In May, a Pennsylvania Public Utility Commission judge ruled there was an "imminent and irreversible danger" in allowing the pipelines to proceed while an underlying case about their legality works its way through the courts, according to The Pittsburgh Post-Gazette. To meet customer obligations amid the setbacks, ETP subsidiary Sunoco recently decided to use a portion of an existing, 12-inch pipeline to connect and bypass yet-to-be-completed portions of the Mariner East 2, according to The Delaware County Daily Times.

Mariner East 1 pipeline has been allowed to resume moving natural gas liquids from southwestern Pennsylvania across the state, but two pipelines under construction along the same route remain on hold, according to The Pittsburgh Post-Gazette.

In West Virginia, Precision is serving as general contractor on EQT Midstream's (NYSE:EQT) (Pittsburgh, Pennsylvania) $150 million segment of the Mountain Valley Pipeline, from Wetzel County to Braxton County. The 104-mile portion of the 303-mile project is designed to transport up to 2 billion cubic feet per day of natural gas after it is scheduled to be completed next summer. The West Virginia Department of Environmental Protection has cited the Mountain valley project four times for breaking water pollution rules, including twice in the past month, according to Charleston Gazette-Mail. For more information, see Industrial Info's project report.

One of the largest projects involving Precision is in its final stages: ETP's $4.2 billion Rover Pipeline, which is designed to transport 3.25 billion cubic feet per day (Bcf/d) of natural gas 710 miles, from the Marcellus and Utica shales to markets throughout the U.S. and Ontario. Precision is finishing up general contracting services for the project, for which the U.S. Federal Energy Regulatory Commission (FERC) approved ETP's request to begin service on several segments in Ohio.

Industrial Info is tracking a $45 million, 11-mile Rover lateral in Ohio, running from Belmont to the bordering city of Moundsville, West Virginia. The lateral is expected to finish construction this summer. Three other laterals are under construction in West Virginia and set to wrap up around the same time: a $40 million, 18-mile lateral; a $30 million, 12-mile lateral; and a $20 million, five-mile lateral. Also, a $20 million, six-mile lateral in Pennsylvania is scheduled to finish construction.

Still, challenges remain for the Rover Pipeline. FERC recently told ETP that it must finish restoring land around parts of the Rover line in Ohio and Michigan before placing more segments into service; ETP had hoped to have begun service on two of the Appalachian laterals by now. West Virginia regulators also fined Rover's operators more than $430,000 for water pollution violations last month. For more information, see Industrial Info's project reports on the Ohio lateral; the 18-mile, 12-mile and five-mile West Virginia laterals; and the Pennsylvania lateral.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/
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