MarkWest Utica EMG LLC and Ohio Gathering Co. LLC announced the completion of definitive agreements with American Energy—Utica LLC (AEU) to provide gas gathering, processing and fractionation services in the Utica Shale in Ohio.
MarkWest Utica EMG is a joint venture (JV) between MarkWest Energy Partners LP and The Energy & Minerals Group. Ohio Gathering Co. is a JV between MarkWest Utica EMG and Summit Midstream Partners LLC. AEU is an affiliate of American Energy Partners LP.
Under the agreement, MarkWest Utica EMG will provide gas processing services at its Cadiz complex in Harrison County, Ohio, and its Seneca complex in Noble County, Ohio. Together, the facilities provide 725 million cubic feet per day of processing capacity, and will be expanded to more than 1.3 billion cubic feet per day by second-quarter 2015.
MarkWest Utica EMG will fractionate AEU’s NGL at its jointly owned Hopedale complex, which has 60,000 barrels per day (bbl/d) of propane and heavy NGL fractionation capacity, and will be expanded to 120,000 bbl/d by first-quarter 2015. MarkWest Utica EMG will also utilize its 40,000 bbl/d de-ethanization facility at the Cadiz complex for purity ethane production on behalf of AEU.
Ohio Gathering will provide gas gathering and compression services for all of AEU’s gas from the contracted area. The company’s system includes hundreds of miles of low- and high-pressure pipelines and compression facilities in southeastern Ohio.
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