MarkWest announces acquisition of gas complex from EQT and development of a third complex

MarkWest Energy Partners, L.P. today announced that it is acquiring EQT’s natural gas processing complex in Langley, Kentucky and an associated natural gas liquids (NGL) pipeline for US$ 230 million.

The Langley processing complex includes a 100 million ft³/d cryogenic processing plant, a 75 million ft³/d refrigeration processing plant, and approximately 28,000 horsepower of compression. Immediately following the closing of the acquisition, MarkWest will commence the installation of a new 60 million ft³/d cryogenic processing plant to expand the Langley cryogenic processing capacity. In conjunction with the closing of the sale of the Langley plant, EQT will execute a long-term agreement with MarkWest to provide processing services for its Kentucky Huron/Berea shale gas and to extend its existing agreement with MarkWest for NGL transportation, fractionation, and marketing services until 2022.

MarkWest will also complete the Ranger NGL pipeline, which is currently under construction, to allow NGLs recovered at the Langley processing complex to be delivered to MarkWest’s Siloam fractionation, storage, and marketing complex in South Shore, Kentucky.

"The sale of these valuable Kentucky assets is the first step in our commitment to prioritise our capital to our most profitable investment opportunities, which for us means development activities, primarily in the Marcellus and also in the Huron/Berea, rather than processing activities," said David Porges, president and chief executive officer of EQT.

Logansport natural gas processing complex
MarkWest is also investing in developing a midstream natural gas processing complex in Logansport, West Virginia, in a partnership called the MarkWest Liberty Midstream & Resources, L.L.C., with The Energy & Minerals Group.

MarkWest Liberty will construct a 120 million ft³/d cryogenic gas processing facility and associated natural gas liquids (NGL) pipeline by mid 2012 to process liquids-rich gas transported in EQT Corporation’s Equitrans gas pipeline, which recently announced a significant expansion to increase transmission capacity. EQT has substantial rich-gas Marcellus acreage in northern West Virginia and has contracted with MarkWest Liberty for the majority of the Logansport plant capacity. The NGLs recovered at Logansport will be transported via pipeline to MarkWest Liberty’s fractionation, storage, and marketing complex in Houston, Pennsylvania.

The Logansport complex is MarkWest Liberty’s third processing complex serving Marcellus production in southwestern Pennsylvania and northern West Virginia.

“We continue to expand our midstream presence in the rich-gas area of the Marcellus and the Logansport complex will allow EQT and other producers to fully develop their Marcellus acreage in Wetzel and Doddridge counties,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest.

Read the article online at: https://www.worldpipelines.com/business-news/05012011/markwest_announces_acquisition_of_gas_complex_from_eqt_and_development_of_a_third_complex/