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United States : SUMMIT INVESTMENTS acquires 40% stake in OHIO GATHERING joint venture

June 5, 2014

Summit Midstream Partners, LLC owns and controls the general partner of Summit Midstream Partners, LP, and MarkWest Energy Partners, LP announced that a subsidiary of Summit Investments is to acquire a 40% equity interest in Ohio Gathering Company, LLC and Ohio Condensate Company, LLC from affiliates of MarkWest and The Energy & Minerals Group (EMG).

Summit Investments reimbursed MarkWest and EMG about US $377 million, which represents 40% of all Ohio Gathering capital contributions made to date.

Ohio Gathering owns and operates and is developing midstream infrastructure in the southern core of the Utica Shale in southeastern Ohio, including, Harrison, Guernsey, Belmont, Noble and Monroe counties.

The infrastructure currently in service and under development includes a liquids-rich gas gathering system and a separate dry gas gathering system, as well as a condensate transportation, storage and stabilisation facility.

Ohio Gathering s liquids-rich gathering system serves as an inlet to MarkWest Utica EMG, LLC s Cadiz and Seneca processing complexes.

Summit Investments, MarkWest, and EMG expect to develop over US $3 billion of natural gas gathering and condensate stabilisation infrastructure. Ohio Gathering is gathering about 181 million ft3/d on behalf of Gulfport Energy Corporation, Rex Energy Corporation, and PDC Energy, Inc.

This acquisition with the 40% share of future Ohio Gathering development capital expenditures, represents the largest transaction made by the Summit enterprise. The team is excited about increasing Summit s interests in Ohio Gathering and partnering with MarkWest and EMG, to develop this important natural gas gathering and condensate stabilisation infrastructure in the core of the Utica Shale.

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Source: TendersInfo (India)

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