MarkWest Energy Partners, L.P. is acquiring EQT Corporation’s natural gas processing complex in Langley, KY and an associated natural gas liquids (NGL) pipeline for $230 million.
The transaction is expected to close in the first quarter.
The Langley processing complex includes a 100 MMcf/d cryogenic processing plant, a 75 MMcf/d refrigeration processing plant, and 28,000 horsepower of compression. After closing of the acquisition, MarkWest will start installation of a 60 MMcf/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 an 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 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, KY.