MarkWest Energy Partners, L.P. has announced that it has submitted a pre-filing application with the Federal Energy Regulatory Commission to construct a new interstate natural gas transmission pipeline.
The 30-inch pipeline will be named the Arkoma and will extend approximately 50 miles from an interconnect with MarkWest’s gathering system in the Woodford Shale production area in southeastern Oklahoma to an interconnect with the Midcontinent Express Pipeline in Bennington, Okla.
The Arkoma Connector Pipeline will provide additional outlets for producers in the Woodford Shale as volumes continue to increase. MarkWest recently executed agreements with Woodford producers, including Newfield Exploration Company, to provide transportation capacity in excess of 500,000 MMcf/d on the Arkoma Connector Pipeline.
In conjunction with the transportation agreements, MarkWest and Midcontinent Express Pipeline LLC entered into an option agreement that provides MarkWest with a one-time right to acquire 10 percent of the equity of MEP after construction is complete on the Midcontinent Express Pipeline and it is placed into service.
MEP is a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Energy Transfer Partners, L.P. The Midcontinent Express Pipeline, connecting Bennington and Perryville, La., will have initial capacity of 1.4 Bcf/d. KMP is managing the construction of and will operate the pipeline.