Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream
Two large midstream (pipeline & processing plant) companies, Dominion and Caiman Energy II, announced a new $1.5 billion, 50/50 joint venture to form a new midstream services company to service the Utica Shale in Ohio and Pennsylvania. The name of the new company is Blue Racer Midstream. Sound familiar? It should. Yesterday MDN brought you the news that Williams is investing $380 million in Caiman Energy/Blue Racer (see this MDN story).Williams owns nearly half of Caiman Energy II (47.5%).
One of the core assets of the new Blue Racer Midstream company will be Dominion’s previously announced $500 million natural gas liquids processing plant in Natrium, WV (see this MDN story). The Natrium plant was scheduled to go online by Dec. 31—a deadline that won’t be met. However, work on the new NGL plant continues at a “furious pace” and the plant will be online in early 2013. Dominion’s extensive gathering pipeline system in eastern Ohio is also part of the deal.