MarkWest Signs Up McClendon’s New Company as Utica Customer

Yesterday MarkWest Energy and their partners The Energy & Minerals Group and Ohio Gathering Company announced they’ve signed up Aubrey McClendon’s new company American Energy Partners (AEP) as a major new customer in the Utica Shale. Ohio Gathering will hook up their pipelines to AEP’s drilled Utica wells and pump natural gas and liquids, and MarkWest will process it all. The natural gas part will be processed in MarkWest’s Cadiz complex in Harrison County, OH and its Seneca complex in Noble County, OH. AEP’s NGLs will be fractionated (separated) at MarkWest’s Hopedale complex…
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Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering

Last December MDN told you that Summit Midstream was buying out Gulfport Energy’s share of the Ohio Gathering pipeline and processing system (see Summit Midstream Buys Gulfport’s Interest in Ohio Gathering). As we said at the time, the deal appears complicated on paper with multiple names (like Blackhawk Midstream), but the bottom line was/is that Summit will be the 40% owner and MarkWest Energy will remain the 60% owner of the Ohio Gathering system.

Yesterday, in an announcement by Summit that’s equally dense with details (likely written by lawyers), Summit announced they’ve closed the Ohio Gathering deal. That’s the sum total of this announcement–that the deal is now done:
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Summit Midstream Buys Gulfport’s Interest in Ohio Gathering

Summit Midstream, until recently, has had midstream operations (pipelines, processing plants) in other major North American shale plays–but they are actively moving into the Marcellus and Utica Shale. In June MDN reported that Summit Midstream had purchased the Mountaineer Midstream gathering system from MarkWest Energy for $210 million in WV (see MarkWest Sells Doddridge County, WV Pipeline System to Raise Cash). On Friday, Summit purchased a significant joint venture share in the Ohio (Utica Shale) Gathering system for an undisclosed sum (although NGI’s Shale Daily is reporting the deal is worth $190 million). We have the Summit press release below, but it’s heavy and dense with joint venture this and partnership within partnership that.

Here’s the MDN simplified view of the deal…
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New Pipeline/Compressor Plant Coming in Belmont County, OH

Ohio Gathering Co. has posted a $5 million bond in Belmont County, OH to cover the cost of potential road repairs and maintenance in connection with a pipeline and compressor plant project they have under way in the county.

Here’s where (in the county) the pipeline and compressor plant is being built, along with the roads that will be affected by truck and heavy equipment traffic:

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