Midstream JV planned for Marcellus shale

MarkWest Energy Partners LP and NGP Midstream & Resources LP plan to form a natural gas midstream services joint venture in the Marcellus shale.

Jan. 28, 2009

By OGJ editors
HOUSTON, Jan. 28 -- MarkWest Energy Partners LP and NGP Midstream & Resources LP plan to form a natural gas midstream services joint venture in the Marcellus shale.

Terms call for MarkWest to be operator and to own 60% and of the JV. MarkWest will contribute $100 million of existing Marcellus assets to the venture.

NGP will invest the next $200 million of capital, which approximates the capital required to finance the project in 2009. Capital funding for 2010-11 will be driven by producer drilling programs.

Finalization of the JV remains subject to customary closing conditions.

MarkWest already provides Marcellus shale midstream services, including gathering and processing services for Range Resources in southwest Pennsylvania.

By yearend, the midstream joint venture is expected to be capable of processing up to 240 MMcfd of gas for Range and other producers.