Kinder Morgan Energy Partners and MarkWest Utica EMG, a joint venture between MarkWest Energy Partners and The Energy and Minerals Group (EMG) announced they have signed a letter of intent to form a midstream joint venture (JV) to pursue two critical new projects to support producers in the Utica and Marcellus shales in Ohio, Pennsylvania and West Virginia.
The first project consists of the development of a 400 million-cubic-foot-per-day (MMcf/d) cryogenic processing complex in Tuscarawas County, Ohio, utilizing an existing, 220-acre site that Kinder Morgan has under option. The second project consists of the development of an initial, 200,000 barrels-per-day (bpd), C2+ natural gas liquids (NGL) pipeline that originates at the planned JV processing facilities in Ohio and transports NGLs to Gulf Coast fractionation facilities.
Key elements of the processing complex project include:
Key elements of the NGL pipeline project include:
“We are pleased to announce this exciting joint venture with MarkWest in the Utica and Marcellus shale resource plays,” said Kinder Morgan Chairman and CEO Richard D. Kinder . “The combination of Kinder Morgan’s strategically located and existing pipeline assets that traverse through the heart of the Utica and Marcellus shale plays, along with MarkWest’s existing and significant midstream footprint throughout the Utica and Marcellus shale plays, should provide significant growth opportunities for the JV.”
“We are excited to partner with Kinder Morgan in this unique opportunity that supports the development of industry-leading midstream solutions,” said MarkWest Chairman, President and Chief Executive Officer Frank Semple. “ The JV processing complex expands our footprint into northern Ohio and complements our existing full-service midstream infrastructure in Ohio, West Virginia and Pennsylvania. The planned joint venture Y-grade pipeline will be by far the most efficient project for the Marcellus and Utica producers to access the Gulf Coast NGL markets and is another critical step in support of our long-term objective of providing our producer customers with multiple market options and maximum value for their natural gas and natural gas liquid production.”
[mappress] LNG World News Staff, August 8, 2013