MarkWest Energy Partners buying East Texas gathering and processing system

By OGJ editors

HOUSTON, July 12 -- MarkWest Energy Partners LP, Denver, agreed to buy a gathering and processing system in east Texas from American Central East Texas Gas Co. LP for $240 million.

The deal, expected to close by Aug. 31, involves American Central's Carthage gathering system and gas processing assets, which provide low- and high-pressure service to producers in Carthage field, gathering gas from the Cotton Valley, Pettit and Travis Peak formations.

The system's 180 miles of pipeline connect with 1,700 wells, and an additional 82 miles of pipeline is under construction. The gathering system includes 65,000 hp of compression, and another 35,000 hp is being installed.

Current system throughput is 245 MMcfd and is slated to increase to 310 MMcfd by Dec. 31. The acquisition includes a 175 MMcfd processing facility under construction, and a natural gas liquids pipeline that is slated to be constructed in 2005.