Boston, MA 08/29/2014 (wallstreetpr) – Markwest Energy Partners LP (NYSE:MWE) is looking to expand the midstream infrastructure in Butler County. It will work on its Keystone Complex so as to support its gas output from the Marcellus Shale and Upper Devonian formations. The new agreements with REX American Resources Corp (NYSE:REX) and EdgeMarc Energy will serve as a platform for the expansion plans. REX and Markwest have worked together on constructing a 32 mile purity ethane pipeline that works as a connector between the Bluestone facility and Sunoco’s Mariner West pipeline project.
The plans
Markwest Energy Partners LP (NYSE:MWE) will work on Bluestone III plant which is expected to get functional in the fourth quarter of 2015. Along with it, it will also work on Bluestone IV plants which are expected to begin operations in the second quarter of 2016. The expansion plans are as per the new agreements made with REX American Resources Corp (NYSE:REX) and EdgeMarc. The partnership will enable Markwest to expand the propane and heavier NGL fractionation capacity. Also, it will serve as a booster for de-ethanization capacity.
The Keystone Complex
The Keystone Complex based in Butler County and anchored by REX American Resources Corp (NYSE:REX) has got Sarsen processing facility and Bluestone processing as well as fractionation complex. The two capacities deliver 26,500 Bbl/d of fractionation capacity and 210 MMcf/d of processing capacity. Markwest Energy Partners LP (NYSE:MWE) started its operations of Bluestone II plant in May 2014. It has got 120 MMcf/d processing capacity and 10,000 Bbl/d each of propane and ethane fractionation capacity. The Bluestone II plant adds to Rex Energy’s growing rich-gas production.
Significance of the expansion
The expansion of Keystone complex is a key strategic step to enhance the producer activity in Butler, beaver and other surrounding counties. Keystone has worked as a major source to enhance the volumes in last two years. The major aim of expansion is to boost the growth of producer customers’ production.
