JV To Build Utica Ohio River Project

October 2014, Vol. 241, No. 10

Regency Energy Partners LP and American Energy – Midstream, LLC have a joint venture agreement for construction and operation of Regency’s Utica Ohio River Project. RGP and American Energy – Utica, LLC will also enter into a gathering agreement for gas produced from the Utica Shale in eastern Ohio by AEU.

Regency and AEU will contribute all previously signed agreements to the joint venture. These include volume commitments and large acreage dedications. As a result, Regency and AE-MidCo will upsize the project to accommodate over 2 Bcf/d of firm volume commitments. These commitments represent most of the projected volumes in the pipeline.

The upsized project will include construction of a 52-mile, 36-inch gathering trunkline capable of delivering up to 2.1 Bcf/d to Rockies Express Pipeline and Texas Eastern Transmission on the southern end of the line. There is the potential to connect to the interstate grid on the northern end of the trunkline which would increase overall system deliverability to 3.5 Bcf/d. The project includes construction of 25,000 horsepower of compression at the REX interconnect. The full project is expected to be completed in mid-2015.

Total costs are estimated at $500 million with Regency contributing 75%, and AE-MidCo 25%. Regency will construct and operate the project.

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