Arkoma Connector Nears Completion

June 2009 Vol. 236 No. 6

MarkWest Energy Partners and ArcLight Capital Partners LLC have formed a joint venture to build and operate the Arkoma Connector pipeline, a 50-mile interstate pipeline.

MarkWest Energy Partners and ArcLight Capital Partners LLC have formed a joint venture to build and operate the Arkoma Connector pipeline, a 50-mile interstate pipeline that will provide approximately 625,000 Dth/d of Woodford Shale takeaway capacity and interconnects with Midcontinent Express Pipeline and Gulf Crossing Pipeline.

Upon completion of the pipeline, which is expected to occur this month, MarkWest will have total takeaway capacity in southeast Oklahoma of approximately 1.3 Bcf/d.

Under the terms of the joint venture, ArcLight is acquiring a 50 percent equity interest in the pipeline for $62.5 million. MarkWest will operate the pipeline and ArcLight will pay a fee to MarkWest to manage the joint venture. Following operational commencement of the pipeline, the joint venture partners will invest equally in the ongoing costs associated with operating or expanding the line.