MarkWest Utica EMG and Ohio Gathering sign agreements with AEU

MarkWest Utica EMG LLC and Ohio Gathering Co. LLC

MarkWest Utica EMG LLC, a joint venture between MarkWest Energy Partners LP (NYSE: MWE) and the Energy & Minerals Group, and Ohio Gathering Co. LLC, a joint venture between MarkWest Utica EMG and Summit Midstream Partners LLC, have completed definitive agreements with American Energy – Utica LLC (AEU), an affiliate of American Energy Partners LP, to provide natural gas gathering, processing, and fractionation services in the Utica shale play in Ohio.

AEU has acquired a significant acreage position in the Utica shale play, and, with these agreements, has dedicated more than 60,000 net acres in the rich-gas and condensate windows to MarkWest Utica EMG and Ohio Gathering.

Under the terms of the agreements, MarkWest Utica EMG will provide natural gas processing services at its Cadiz complex in Harrison County, Ohio, and its Seneca complex in Noble County, Ohio. Combined, these two large complexes currently provide 725 million cubic feet per day of total processing capacity to eight key producer customers in the Utica shale play. Based on previous announcements, the two complexes will be expanded to more than 1.3 billion cubic feet per day of processing capacity by the second quarter of 2015.

MarkWest Utica EMG will fractionate AEU’s natural gas liquids (NGLs) at its jointly owned Hopedale complex, which currently includes 60,000 barrels per day (Bbl/d) of propane and heavier NGLs fractionation capacity and will be expanded to 120,000 Bbl/d of capacity by the first quarter of 2015. MarkWest Utica EMG will utilize its 40,000 Bbl/d de-ethanization facility at the Cadiz complex to produce purity ethane on behalf of AEU for delivery to the ATEX pipeline.

Ohio Gathering will provide natural gas gathering and compression services for all of AEU’s gas produced from the dedicated area. Ohio Gathering’s system currently consists of hundreds of miles of low- and high-pressure pipelines and numerous compression facilities throughout southeastern Ohio, including Harrison, Guernsey, Belmont, Noble, and Monroe counties.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...