US-based MarkWest Energy Partners has signed an agreement with Chesapeake Energy to acquire certain midstream assets in the Anadarko Basin in the US for $245m.
The acquired assets in the Anadarko Basin include Granite Wash and Hogshooter formations, and other liquids-rich zones.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The assets also include the Buffalo Creek plant, a cryogenic gas processing plant, which inlcudes 200 million cubic feet of gas per day and 22 miles of gas gathering pipeline in Hemphill County, Texas, as well as about 30 miles of high-pressure trunk line.
The Buffalo Creek plant, and the associated trunk line, are currently under construction and are expected to be operational in early 2014.
In addition, MarkWest will acquire an amine treating facility and a 5 mile gas gathering pipeline in Washita County, Oklahoma, under the agreement.
The company has also signed long-term, fee-based agreements with Chesapeake for gas gathering, compression, treating, and processing services.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAs part of the gas processing deal, Chesapeake has contributed about 130,000 acres in the Anadarko Basin.
The company is expecting about 50 million cubic feet of gas per day of initial gas volumes from Chesapeake, which can increase to about 250 million cubic feet of gas per day by 2017.
Both the companies also extended key processing agreement in the Appalachian Basin for another five years to 2020.
MarkWest Energy chairman, president and CEO, Frank Semple, said the Granite Wash assets provide producers with profitable, de-risked areas of liquids-rich production in the US.
"This transaction provides MarkWest with an unrivaled opportunity to strengthen and grow our leading midstream presence in the Texas Panhandle and western Oklahoma," Semple added.
The transaction has been closed along with the execution of the agreements.
Image: MarkWest Energy has acquired midstream assets in the Anadarko Basin in US. Photo: Courtesy of Bob Jenkins.
