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Mississippi petroleum company to enhance Appalachian facilities

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Ergon Inc., a private petroleum refinery and distribution company based in Jackson, Mississippi, announced plans July 1 to enhance its subsidiaries in the Appalachian Basin.

Ergon plans to add 10,000 barrels per day of condensate stabilization in Newell, West Virginia, in 2015. The company also plans to start up 10,000 barrels per day of condensate stabilization capacity at its Marietta, Ohio, river terminal by the end of this year.

“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,” Robert Lampton, Ergon’s president of supply & distribution, said in a statement.

Several Ergon subsidiaries, including Ergon - West Virginia; its refinery, Ergon Oil Purchasing; Ergon Terminaling; Ergon Trucking and Magnolia Marine Transport Company, have operated in the Appalachian region for more than 17 years.

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.

“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,” Lampton added.

Ergon operates under six primary business segments, including Refining & Marketing, Asphalt & Emulsions, Transportation & Terminaling, Oil & Gas, Real Estate, and Corporate & Other.