MarkWest Energy announced that today they closed on the previously announced acquisition of EQT’s natural gas processing complex in Langley, Kentucky and an associated natural gas liquids (NGL) pipeline for $230 million.
The acquisition includes a 100 million cubic feet per day (MMcf/d) cryogenic processing plant, a 75 MMcf/d refrigeration processing plant, approximately 28,000 horsepower of compression, and a partially constructed NGL pipeline that MarkWest will complete. In conjunction with the acquisition, MarkWest executed a long-term agreement with EQT to provide processing services for EQT’s Kentucky Huron shale gas and to extend its existing agreement with EQT to provide NGL transportation, fractionation, and marketing services.
“We are very pleased to complete the acquisition of the Langley processing facility and NGL pipeline, which will expand our extensive midstream capabilities in the Marcellus and Huron/Berea shales,” said Frank Semple, chairman, president and chief executive officer of MarkWest. “We are also excited about the quality group of EQT employees who have joined the MarkWest team. We have been a leader in providing fully integrated midstream services in the Northeast for more 20 years and the new facilities and enhanced organization in Kentucky will strengthen our capabilities and provide long-term value to MarkWest and to EQT.”
“We look forward to working with MarkWest in support of the development of our liquids rich plays, Marcellus Shale in West Virginia and Huron Shale in Kentucky,” said David Porges, president and chief executive officer of EQT.*