JACKSON — Ergon Inc. plans to enhance its subsidiaries’ facilities in the Appalachian Basin.
The Appalachian Basin comprises the Marcellus Shale and Utica Shale Plays. Several Ergon subsidiaries, including Ergon-West Virginia Inc., its refinery, acquired from Quaker State in 1997, Ergon Oil Purchasing Inc., Ergon Terminaling Inc., Ergon Trucking Inc. and Magnolia Marine Transport Company, have operated in the region for more than 17 years.
The regional area of operation for these companies spans all of Ohio, West Virginia, western Pennsylvania and parts of Kentucky and New York. These subsidiaries’ assets and capabilities in the Appalachian Basin include a paraffinic refinery, a crude oil and condensate pipeline, six crude oil terminals, a fleet of more than 100 trucks and eight boats and barges. The subsidiaries have spent over $75 million expanding tankage and enhancing crude and condensate gathering capabilities in support of crude oil and condensate producers in the Appalachian Basin over the last two years.
Ergon plans to start up 10,000 barrels per day of condensate stabilization capacity at its Marietta, Ohio, river terminal. Startup of this capacity is anticipated for the fourth quarter of 2014 and will result in lower vapor pressure condensate for ultimate marketing. Additionally, Ergon plans to add 10,000 barrels per day of condensate stabilization in Newell, West Virginia, in 2015. Furthermore, Ergon plans to install new capacity at its 23,000 barrels per day specialty refinery in 2016.
Robert Lampton, Ergon’s president of supply & distribution, said, “These investments complement our existing capabilities in the Appalachian Basin and further enhance our ability to support drillers and producers in the growing condensate and NGL markets. We’re thrilled to have the opportunity to expand on the services we’ve offered Ergon customers in the Appalachian Basin for almost two decades.”