From marketwatch.com, MarkWest Energy Partners announced two major agreements related to its ongoing development of the hydrocarbon-rich area of the Marcellus shale.
The first agreement is a long-term fee-based arrangement with affiliates of Chesapeake Energy to expand its Marcellus gas processing capacity in an approximately 185 square mile dedication area, which includes portions of Brooke, Ohio, and Marshall Counties in northern West Virginia and Washington County in southwestern Pennsylvania.
The second agreement is a long-term fee-based arrangement with Antero Resources to install significant gathering pipeline facilities in Doddridge and Harrison Counties in northern West Virginia.
MarkWest will expand the gas processing capacity at its Majorsville, WV, processing complex by 400 million cubic feet per day (MMcf/d) from 670 MMcf/d to approximately 1.1 billion cubic feet per day (Bcf/d). This expansion capacity is being provided in exchange for the significant dedication of acreage made by Chesapeake to the Majorsville processing complex. MarkWest will construct two new 200 MMcf/d cryogenic gas plants that are expected to be completed in late 2013 and mid 2014.
The gathering facility expansion to support Antero Resources will expand MarkWest’s existing gathering operations in southwestern Pennsylvania into a key part of West Virginia and includes the installation of two large high-pressure gathering headers and associated compressor stations in Doddridge and Harrison Counties, WV.
The Majorsville expansion will increase MarkWest’s total processing capacity in the rich gas area of the Marcellus to more than 2.1 Bcf/d, essentially all of which is supported by long-term agreements with MarkWest’s producer customers. All of the natural gas liquids (NGLs) recovered at MarkWest’s four large Marcellus processing complexes in southwest Pennsylvania and northern West Virginia are or will be connected through MarkWest’s extensive NGL gathering system for delivery to its Houston, Pennsylvania fractionation, storage, and marketing complex.
MarkWest previously announced that, to support its significant Marcellus expansions, it is constructing a second fractionation complex in Harrison County, Ohio, in conjunction with its Utica shale expansion and associated Utica shale joint venture.
Following the completion of its announced Marcellus and associated Utica gas gathering, processing and fractionation facilities, MarkWest and its affiliates will have the capacity to produce approximately 155,000 barrels per day (Bbl/d) of purity ethane and 120,000 Bbl/d of propane and heavier NGLs. This represents more than 10 percent of the total US supply of purity ethane and more than 5 percent of the total US supply of propane. In mid 2013, the Mariner West pipeline project is set for completion to deliver Marcellus ethane to petrochemical markets in Sarnia, Ontario, Canada.
SOURCE: MarkWest Energy Partners, L.P., adapted from wire services by www.frackcheckwv.net
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