MarkWest Energy Partners, a wholly owned subsidiary of MPLX, has formed a strategic joint venture (JV) with Antero Midstream Partners to develop Antero Resources Corporation's Marcellus Shale acreage in West Virginia.
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The JV is equally owned by MarkWest and Antero Midstream and supported by a long-term, fee-based agreement with Antero Resources.
Under the agreement, Antero Midstream will release 195,000 gross acre processing dedication to the JV from Antero Resources. It will increase MarkWest’s Marcellus Shale area dedication from approximately 167,000 gross operated acres to more than 360,000 gross operated acres.
This additional acreage includes Antero Resources' core Marcellus Shale position in Tyler, Wetzel, and Ritchie counties, West Virginia.
MPLX president Don Templin said: “MPLX is excited to continue expanding our midstream operations on behalf of Antero Resources by partnering with Antero Midstream.
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By GlobalData“This unique transaction further strengthens our long-term relationship with the largest producer in the Appalachian Basin and provides MPLX with substantial future organic growth opportunities.”
The JV will also expand processing infrastructure at Sherwood Complex in Doddridge County, West Virginia, to support Antero Resources’ production growth.
Three new JV processing facilities are currently being developed at Sherwood Complex, totalling 600 million square feet per day of incremental capacity for Antero Resources.
The first two new facilities are expected to initiate operations from the first quarter and third quarter of this year, while the third facility will commence its operations in the first quarter of 2018.
The JV also intends to develop another eight processing facilities to support Antero Resources, which would be located at both the Sherwood Complex and a new location in West Virginia.
MarkWest will continue to construct and operate all processing facilities. It will also retain full ownership of the first six processing facilities at the Sherwood Complex.
Furthermore, the JV will assist the growth of Antero Resources' natural gas liquids (NGL) production with fractionation infrastructure located at the Hopedale Complex in Harrison County, Ohio.
MarkWest will initially contribute three processing facilities to the JV that are currently under developmental stage with supporting infrastructure necessary for operation of these facilities.
Antero Midstream will initially contribute nearly $155m for its allocated share of processing assets at the Sherwood Complex and ownership of fractionation capacity at the Hopedale Complex.
Both parties are subsequently expected to equally contribute in the JV.
Image: MarkWest asset for Marcellus. Photo: courtesy of MarkWest Energy Partners.
