DENVER, Colo. — Antero Resources Corporation has announced it will be constructing a state-of-the-art wastewater treatment complex in Doddridge County.
AnteroThe company will partner with Veolia Water Technonoliges Inc. and Veolia North America to build the 60,000 barrel per day complex that will treat and reuse flowback and produced water rather than permanently dispose of the water in injection wells.
Using Veolia’s proprietary AnoxKaldnes™ MBBR biological treatment and its CoLD Process®, an advanced evaporation and crystallization technology, the facility will treat a full range of water qualities including Antero’s completion flowback and produced water.
Combined with Antero’s existing freshwater pipeline distribution system, the advanced wastewater treatment complex is the company’s attempt to be at the forefront of environmentally conscious water management in both the Marcellus and Utica Shale plays.
“This significantly improves the safety and reduces the environmental impact of shale development by removing hundreds of thousands of water truckloads from the roads every year, and recycles and reuses the water rather than dispose of it,” Paul Rady, Chairman and CEO said. “The solutions also provide Antero with a significant development cost advantage.”
The treatment facility will save Antero an estimated $150,000 per well on future completion costs and generate approximately $55 million to $65 million in earnings before interest, taxes, depreciation and amortization at full utilization three years following the in service date.
In addition to reusable fresh water, the facility is expected to produce marketable byproducts with commercial value including salt and other brine products currently used by oil and gas operators for drilling and completion activities.
“Based on our current drilling plans, we expect the facility to generate attractive all-in cash on cash returns in-line with our midstream organic gathering and compression capital investments of 4-times to 7-times EBITDA,” Glen Warren, President and CFO said.
With the complex site selected for a location –not specified at this time– in Doddridge County, Governor Earl Ray Tomblin praised Antero for its involvement in the state’s economy.
“This is a substantial capital investment that will create construction and long term operating jobs while also reducing the amount of fresh water that Antero withdraws from state waterways,” he said. “I commend Antero for making a significant commitment to our state’s economy and minimizing the impact of oil and gas operations on local communities.”
Per the agreement between the entities, Antero will own the $275 million treatment complex, including any ancillary facilities, while Veolia will design, build, operate and maintain under a 10-year turnkey contract.
“This project shows that environmental stewardship can result in economic advantages, while maintaining high standards for social responsibility using unique technologies and operational services that provide a reliable and sustainable solution for flowback and produced water treatment,” Klaus Andersen, CEO of Veolia Water Technologies Inc. said.
The complex will take two years to construct and is expected to be completed sometime in 2017, pending finalization of project logistics.
