Global Infrastructure Partners Acquires Chesapeake Midstream Interest

Duane Nichols — Sat, 09 Jun 2012 20:50:37 +0000

: Chesapeake Energy’s 50 Acre Campus

According to Pam Kasey, writing in the State Journal, Global Infrastructure Partners will purchase all of Chesapeake Energy Corp.’s ownership interest for $2 billion in Chesapeake Midstream Partners LP. This purchase will result in Global Infrastructure Partners, or GIP, owning 100 percent of CHKM’s general partner interest and 69 percent of its limited partner units.

The move is part of Chesapeake Energy’s sell-off of assets to cover its cash shortfall. According to Chesapeake’s website, Chesapeake Midstream Partners, or CHKM, is a master limited partnership between Chesapeake Energy, Global Infrastructure Partners and public unit holders. It has a strong asset base in the Barnett Shale near Fort Worth, Texas, in the Haynesville Shale in Louisiana, in the Marcellus Shale in Pennsylvania and West Virginia and in the Mid-Continent region of Arkansas, Kansas, Oklahoma and Texas.

On its own website, CHKM claims to be the largest gathering and processing master limited partnership in the U.S.

GIP is an infrastructure investment fund founded by Credit Suisse, General Electric Co. and an independent management team, according to Credit Suisse. In two other aspects of a larger transaction, GIP signed an agreement to acquire some midstream assets from Chesapeake Energy’s midstream subsidiary and Chesapeake Midstream signed a letter of agreement to acquire some Chesapeake mid-continent gathering and processing assets.

In the Marcellus, CHKM owns about 47 percent of the Marcellus gathering systems made up of about 200 miles of gathering pipeline.

The Wetzel County Action Group contested the building of the Pleasants and Miller compressor stations by Chesapeake partners in 2010. Access to this appeal no. 10-3-AQB is on the web site of the WV Air Quality Board.

MarkWest Energy Sets Long-Term Plan for Midstream Shale Gas Services in WV

Duane Nichols — Sat, 05 May 2012 00:12:38 +0000

From marketwatch.com, MarkWest Energy Partners announced two major agreements related to its ongoing development of the hydrocarbon-rich area of the Marcellus shale.

The first agreement is a long-term fee-based arrangement with affiliates of Chesapeake Energy to expand its Marcellus gas processing capacity in an approximately 185 square mile dedication area, which includes portions of Brooke, Ohio, and Marshall Counties in northern West Virginia and Washington County in southwestern Pennsylvania.

The second agreement is a long-term fee-based arrangement with Antero Resources to install significant gathering pipeline facilities in Doddridge and Harrison Counties in northern West Virginia.

MarkWest will expand the gas processing capacity at its Majorsville, WV, processing complex by 400 million cubic feet per day (MMcf/d) from 670 MMcf/d to approximately 1.1 billion cubic feet per day (Bcf/d). This expansion capacity is being provided in exchange for the significant dedication of acreage made by Chesapeake to the Majorsville processing complex. MarkWest will construct two new 200 MMcf/d cryogenic gas plants that are expected to be completed in late 2013 and mid 2014.

The gathering facility expansion to support Antero Resources will expand MarkWest’s existing gathering operations in southwestern Pennsylvania into a key part of West Virginia and includes the installation of two large high-pressure gathering headers and associated compressor stations in Doddridge and Harrison Counties, WV.

The Majorsville expansion will increase MarkWest’s total processing capacity in the rich gas area of the Marcellus to more than 2.1 Bcf/d, essentially all of which is supported by long-term agreements with MarkWest’s producer customers. All of the natural gas liquids (NGLs) recovered at MarkWest’s four large Marcellus processing complexes in southwest Pennsylvania and northern West Virginia are or will be connected through MarkWest’s extensive NGL gathering system for delivery to its Houston, Pennsylvania fractionation, storage, and marketing complex.

MarkWest previously announced that, to support its significant Marcellus expansions, it is constructing a second fractionation complex in Harrison County, Ohio, in conjunction with its Utica shale expansion and associated Utica shale joint venture.

Following the completion of its announced Marcellus and associated Utica gas gathering, processing and fractionation facilities, MarkWest and its affiliates will have the capacity to produce approximately 155,000 barrels per day (Bbl/d) of purity ethane and 120,000 Bbl/d of propane and heavier NGLs. This represents more than 10 percent of the total US supply of purity ethane and more than 5 percent of the total US supply of propane. In mid 2013, the Mariner West pipeline project is set for completion to deliver Marcellus ethane to petrochemical markets in Sarnia, Ontario, Canada.

SOURCE: MarkWest Energy Partners, L.P., adapted from wire services by www.frackcheckwv.net

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Global Infrastructure Partners Acquires Chesapeake Midstream Interest

MarkWest Energy Sets Long-Term Plan for Midstream Shale Gas Services in WV