Processing & Fractionation
In February 2017, Antero Midstream formed a 50/50 joint venture (the “Joint Venture”) with MarkWest Energy Partners, a wholly owned subsidiary of MPLX (NYSE: MPLX), to develop processing and fractionation assets in the core of the liquids-rich Marcellus and Utica Shales. Antero Midstream contributed 195,000 gross acres of its liquids-rich dedication in West Virginia and expects to invest up to $800 million in the Joint Venture through 2020, net to its 50% ownership interest. MarkWest already processes all of Antero Resources’ liquids-rich gas through its plants at the Sherwood Complex in West Virginia and the Seneca Complex in Ohio. The Joint venture will have the potential to construct five 200 MMcf/d processing plants at the Sherwood Complex and capacity for six 200 MMcf/d processing plants at the new Smithburg Complex in West Virginia. Additionally, the Joint Venture owns a 33% interest in the recently commissioned 60,000 Bbl/d Hopedale 3 fractionation plant in Ohio. The Joint Venture will also have the option to participate in additional fractionation capacity in the future, contingent on further C3+ NGL production growth.
The processing and fractionation joint venture is another example of how Antero Midstream intends to expand its business through a focus on “full value chain organic growth” across the midstream sector in Appalachia.
- Areas of Operation: West Virginia and Ohio.
- 50% JV interest in 5 processing plants to be built at Sherwood Complex in WV.
- 50% JV interest in Smithburg Complex in WV with capacity for 6 processing plants.
- 33% JV interest in 60,000 Bbl/d Hopedale 3 fractionation plant in OH.