February 2014, Vol. 241 No. 2

In The News

MarkWest Energy, EMG Create Utica Shale JV

MarkWest Energy Partners and The Energy & Minerals Group (EMG) announced the execution of definitive agreements with Gulfport Energy to provide stabilization services and potential gathering services for condensate produced within an area that includes Belmont, Harrison, Guernsey, Noble, and Monroe counties, OH.

Gulfport is developing acreage within the wet gas, retrograde condensate and oil windows of the emerging Utica Shale and has over 147,000 net acres under lease.

MarkWest and EMG will form Ohio Condensate Co., a joint venture related to the development of facilities and services to support the growth of condensate production occurring in the liquids-rich areas of the Utica Shale. Initial infrastructure development will consist of a new condensate stabilization facility, with associated logistics and storage terminal capabilities to be constructed in Harrison County, OH and placed in service by the third quarter.

The facility will have initial stabilization capacity of 23,000 bpd and an immediate 30,000-bpd expansion is anticipated. The facility will be co-located and fully integrated with condensate storage, and a truck and rail-loading terminal that will be constructed and operated to serve the joint venture.

In the future, a condensate gathering system and regional pipelines may be constructed to support additional deliveries to the facility. Furthermore, the facility will serve as the origin for MPLX’s Cornerstone Pipeline, a condensate pipeline project that will terminate near Canton, OH and is scheduled to become operational by late 2016.