Antero Resources plans to complete drilling locations in the Utica under the expectation that the Rover pipeline phase one will start in mid-2017, executives said during an earnings call this week.
The independent producer is an anchor shipper on the 511-mile (822km) Energy Transfer pipeline project, which would transport 3.1 Bcf/d (88mn m³/d) of Marcellus and Utica shale gas from processing plants in West Virginia, Pennsylvania and Ohio to a natural gas hub in western Ohio for delivery into Michigan and Canada.
The US Federal Energy Regulatory Commission (FERC) yesterday partially halted construction of the line in response to an earlier spill of drilling fluids, raising questions on whether the line will begin operations on schedule. Antero did not respond to an Argus inquiry on whether FERC's action has altered the company's plans.
Phase one, currently scheduled to come on line in July, would connect Antero's Utica assets to the midcontinent and Gulf coast through the Seneca processing facility in Ohio, chief executive Paul Rady said. Phase two is scheduled to come on line in November and would connect the producer's Marcellus assets to the same market areas through the Sherwood processing facility in West Virginia.
Antero has a 773mn cf/d firm transportation contract on the new pipeline. Once phase two has started, the producer will likely fill Rover with Marcellus gas while its Utica production continues to "grow into the capacity," Rady said.
Antero produced 2.1 Bcf/d of natural gas equivalent (Bcfe/d) during the first quarter, up by 22pc from a year earlier. The producer averaged a realized price of $3.35/1,000 cf during the quarter, or a 3¢/mmBtu premium to Nymex.
