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.”