Access Midstream Partners LP (NYSE:ACMP) reports a major expansion of the Utica East Ohio (UEO) midstream service complex in eastern Ohio. The expansion will increase UEO's nameplate capacity to 1 billion cubic feet per day (bcf/d) and allows for a processing capacity of over 1.1 bcf/d. UEO is a joint venture owned 49% by Access Midstream, 30% by M3 Midstream LLC, and 21% by EV Energy Partners LP (NASDAQ:EVEP).
Additional capacity is needed to meet new commitments from existing customers Chesapeake Energy Corp. (NYSE:CHK), Total Gas & Power North America, EnerVest Ltd., and new customer, American Energy–Utica LLC, an affiliate of American Energy Partners LP. These new commitments are expected to increase UEO’s ultimate throughput by 70% over existing commitment levels.
The UEO complex will provide gathering, compression and dehydration services for American Energy–Utica. The new long-term agreement between UEO and American Energy–Utica includes a 145,000-acre area of mutual interest, installation of 50 miles of gathering pipeline and compression services.
The UEO expansion will include the construction of a second processing train at the Leesville, Ohio, facility and extension of an existing high-pressure pipeline from UEO’s Harrison Hub to Cardinal Gas Services’ Archer Compression Facility in Harrison County. Additional services also will be added at Harrison Hub, including downstream liquids interconnects and expanded propane and butane storage.
“Our investment in this expansion at UEO underscores our belief in the long-term viability of the Utica shale,” commented Mike Stice, CEO of Access Midstream. “This growth not only significantly increases our capacity but will improve access to downstream liquids markets.”