Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
080713 - Kmp-mwe Utica Project Loi - Final

080713 - Kmp-mwe Utica Project Loi - Final

|Views: 63|Likes:
Published by petersoe0
080713 - Kmp-mwe Utica Project Loi - Final
080713 - Kmp-mwe Utica Project Loi - Final

More info:

Published by: petersoe0 on Aug 15, 2013
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less





HOUSTON, Aug. 7, 2013
Kinder Morgan Energy Partners, L.P. (NYSE: KMP)(Kinder Morgan), and MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy andMinerals Group (EMG) today announced they have signed a letter of intent to form a midstream joint venture (JV) to pursue two critical new projects to support producers in the Utica andMarcellus shales in Ohio, Pennsylvania and West Virginia. The first project consists of thedevelopment of a 400 million-cubic-foot-per-day (MMcf/d) cryogenic processing complex inTuscarawas County, Ohio, utilizing an existing, 220-acre site that Kinder Morgan has under option. The second project consists of the development of an initial, 200,000 barrels-per-day(bpd), C2+ natural gas liquids (NGL) pipeline that originates at the planned JV processingfacilities in Ohio and transports NGLs to Gulf Coast fractionation facilities.Key elements of the processing complex project include:
MarkWest Utica EMG would anchor the
JV’s first
of two planned 200 MMcf/dcryogenic processing plants
to be constructed on Kinder Morgan’s existing 220
-acre sitein Tuscarawas County, Ohio (JV processing complex). The JV would expect the initial200 MMcf/d cryogenic processing plant to be in service by the fourth quarter of 2014with the second 200 MMcf/d plant in-service shortly thereafter, subject to timing of customer commitments. The existing 220-acre site is expandable and could accommodatemore than 1 billion cubic feet per day of processing capacity;- more-
LOI-Joint Venture Page 2
MarkWest Utica EMG would deliver rich-gas volumes to the JV processing complexthrough an extension of its existing rich-gas gathering system in Harrison, Belmont,Guernsey, Noble and Monroe counties in Ohio. The JV processing complex would provide MarkWest
Utica EMG’s
producer customers with additional residue outlets intothe Tennessee Gas Pipeline and Dominion Transmission pipeline systems;
The JV processing complex would serve new customers in Carroll, Columbiana,Mahoning and Trumbull counties in northern Ohio and provide a critical full-servicesolution, which includes gas processing, NGL transportation and fractionation andresidue gas outlets;
To deliver the northern Utica gas to the processing complex, Kinder Morgan has obtainedregulatory approval to convert a portion of an existing 26-inch Tennessee Gas PipelineCompany, L.L.C. pipeline into rich-gas gathering service, which could begin receivingrich-gas by the fourth quarter of 2014;
The JV would construct a new pipeline to deliver NGLs produced at the JV processingcomplex into MarkWest and MarkWest Utica
extensive NGL gathering network for short-term and long-term fractionation at its Ohio and Pennsylvania fractionation andmarketing complexes;
The JV would own the processing complex on a 50-50 basis and MarkWest Utica EMGwould operate the facilities;Key elements of the NGL pipeline project include:
Kinder Morgan and MarkWest Utica EMG will develop a NGL pipeline project from thetailgate of the JV processing complex to Gulf Coast fractionation facilities through theconversion of over 900 miles of Kinder Morgan
24-inch and 26-inch Tennessee GasPipeline system currently in natural gas service from Tuscarawas County, Ohio to Natchitoches, La., and the construction of approximately 200 miles of new NGL pipelinefrom Natchitoches to Mont Belvieu, Tex., and/or south Louisiana. Kinder Morgan andMarkWest Utica EMG are evaluating constructing new fractionation facilities, as well asutilizing third-party fractionation facilities throughout the Gulf Coast;-more-
LOI-Joint Venture Page 3
The proposed NGL pipeline would access MarkWest and MarkWest Utica EMG
 extensive NGL pipeline network that extends throughout the rich-gas areas of theMarcellus and southern Utica to deliver NGLs to the new NGL pipeline;
By converting over 900 miles of existing Tennessee Gas Pipeline assets and utilizingMarkWest and MarkWest Utica EMG
’s existing NGL network, the JV
 parties believetheir NGL pipeline is best positioned to provide the most cost effective Y-grade outletfrom the Utica and Marcellus shale plays to the Gulf Coast area markets;
The NGL pipeline would be expandable to 400,000 bpd with the addition of pumpstations;
Subject to sufficient shipper commitments, permitting and all related regulatoryapprovals, a fourth quarter 2015 in-service date for the NGL pipeline is anticipated.
Kinder Morgan would own at least 75 percent of the NGL pipeline and MarkWest UticaEMG would have the option to invest up to 25 percent. Kinder Morgan would operatethe pipeline.
“We are pleased to announce
this exciting joint venture with MarkWest in the Utica andMarcellus shale resource plays
said Kinder Morgan Chairman and CEO Richard D. Kinder.
“The combination of Kinder Morgan’s strategically located and existing pipeline assets that
traverse through the heart of the Utica and Marcellus s
hale plays, along with MarkWest’s
existing and significant midstream footprint throughout the Utica and Marcellus shale plays,should provide significant growth opportunities for the JV.
“We are excited to partner with Kinder Morgan in this unique opportunity that supports
the development of industry-
leading midstream solutions,” said MarkWest Chairman, Presidentand Chief Executive Officer Frank Semple. “The
JV processing complex expands our footprintinto northern Ohio and complements our existing full-service midstream infrastructure in Ohio,West Virginia and Pennsylvania. The planned joint venture Y-grade pipeline will be by far themost efficient project for the Marcellus and Utica producers to access the Gulf Coast NGLmarkets and is another critical step in support of our long-term objective of providing our  producer customers with multiple market options and maximum value for their natural gas and
natural gas liquid production.”

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->