MarkWest, Antero begin gathering, processing in West Virginia

Nov. 2, 2012
MarkWest Energy Partners and Antero Resources, both of Denver, have begun operations at the Sherwood I processing plant and on the first phase of a high-pressure gas gathering system in Harrison and Doddridge counties, W.Va.

MarkWest Energy Partners and Antero Resources, both of Denver, have begun operations at the Sherwood I processing plant and on the first phase of a high-pressure gas gathering system in Harrison and Doddridge counties, W.Va.

The 200-MMcfd Sherwood plant is the first phase of planned processing; MarkWest is building the 200-MMcfd second phase there, which it expects to be in service during second-quarter 2013.

MarkWest and Antero reached agreements for potential development of a third processing plant at the same site. It would support additional rich-gas production and bring total processing capacity at Sherwood to 600 MMcfd.

The site is near the center of Antero’s rich-gas production in northern West Virginia; the plant’s associated volumes will be gathered by MarkWest, Antero, and other providers.

MarkWest and Antero estimate future capacity at Sherwood could exceed 1 bcfd with continued development by Antero of its rich-gas acreage. Antero holds more than 200,000 net acres of leasehold in northern West Virginia. The company is currently flowing about 90 MMcfd through Sherwood 1 from a portion of its 104 horizontal Marcellus wells that are producing more than 400 MMcfd of gross operated production in West Virginia. Antero plans to increase Sherwood I throughput over the midterm.

Antero will have access to the “full suite of MarkWest’s midstream services” in the Marcellus and all of the announced ethane and propane pipeline projects, the companies said. NGLs recovered at Sherwood will flow into MarkWest’s NGL pipeline network that also connects its Mobley and Majorsville plants to its Houston, Pa., fractionation and marketing.

Pending completion is MarkWest’s previously announced fractionation, including the 100,000 b/d that is being developed in Harrison County, Ohio, with its partner Energy & Minerals Group.

MarkWest’s total announced NGL fractionation capacity for the Marcellus and Utica will be about 275,000 b/d. This capacity includes nearly 155,000 b/d of purity ethane and 120,000 b/d of propane and heavier NGL fractionation.

MarkeWest said that by yearend 2014, it will operate more than 2.5 bcfd of processing capacity in Pennsylvania and West Virginia.