MarkWest plans to add more processing capacity in the Marcellus, Utica

MarkWest Energy Partners is further expanding its processing capacity in the Marcellus and Utica shale plays, the Denver-based midstream company said Wednesday.

In the Marcellus, MarkWest will construct a seventh 200 million cubic feet per day (MMcf/d) processing plant at its Sherwood complex in Doddridge County, W.Va., at the request of Antero Resources Corp., a Denver-based driller.

The new plant is anchored by long-term, fee-based agreements and will expand total capacity at the complex to 1.4 billion cubic feet per day (Bcf/d) by the third quarter of 2015. This month, MarkWest plans to begin operations at the Sherwood IV plant, the company said in its second quarter earnings release.

In addition, the company will build a sixth processing complex in the Marcellus Shale. The new facility, called the Hillman complex, will be located in Washington County, Pa., and support rich-gas production from Range Resources. The Hillman complex will initially consist of a 200 MMcf/d processing plant and a de-ethanization facility.

The facility is scheduled to begin operations during the first quarter of 2016. Propane and heavier natural gas liquids recovered at the Hillman complex will be transported by a new pipeline to MarkWest’s complex in Houston, Pa., for fractionation, according to MarkWest.

In the Utica, the formation that underlies the Marcellus in the Appalachian Basin, MarkWest and its joint venture partner The Energy & Minerals Group plan to develop Cadiz III, a 200 MMcf/d processing plant at the Cadiz complex in Harrison County, Ohio. The new facility is expected to be online during the first quarter of 2015 and will increase total processing capacity to 525 MMcf/d.

The Cadiz complex currently consists of a 125 MMcf/d cryogenic processing plant. This September, the company will begin operating the 200 MMcf/d Cadiz II plant to support rich-gas production from Gulfport Energy and other producers, MarkWest said.

During the second quarter of 2014, MarkWest placed into service five major infrastructure projects, consisting of two processing plants with 320 MMcf/d of capacity in the Marcellus; a 200 MMcf/d processing plant in the Utica; 20,000 barrels per day of ethane and heavier fractionation in the Marcellus and a 40,000 b/d de-ethanization facility in the Utica, according to MarkWest.

Stephanie Ritenbaugh: or 412-263-4910. Twitter: @StephanieRit

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