Penn Virginia receives construction business

NEW YORK

Penn Virginia Resource Partners LP on Tuesday said it will construct and operate natural gas pipelines and related facilities on behalf of a private company.

The agreement is expected to add to cash flow by the third quarter, though Penn Virginia released no other financial information about the deal.

Under the agreement, Penn Virginia's midstream business will construct a system that should become operational during the second quarter.

The project, which will feed a production facility in Wyoming County, Penn., will cost $6 million to $7 million in 2010.

Penn Virginia could extend the system in the future, at a cost of up to $10 million.

Company shares rose 12 cents to $24.01.