Must-know highlights from MarkWest Energy Partners' analyst day (Part 6 of 7)
Apart from its growth investments into its business segments, MWE also covered major opportunities that it has positioned itself to gain from.
Liquids to market
MWE stands to benefit from a surge in NGL growth—especially in the Marcellus and Utica shales. NGLs, or natural gas liquids, are by-products of natural gas processing. NGLs, which include ethane, propane, and butane, are also used as alternative sources of energy. MWE currently has over 60% NGL processing capacity in the Marcellus and Utica. MWE has lined up several projects to take these liquids to market. These include the following.
- The Mariner West Project: MWE and Sunoco Logistics (SXL) have partnered to transport Marcellus ethane to Canadian markets. MWE has constructed 45 miles of new pipeline, which it has leased to SXL.
- The Mariner East Project: This project will be an export outlet to Marcellus ethane. MWE has partnered with SXL and will transport ethane to SXL’s Marcus Hook facility, where it will proceed to sale in international markets.
- The ATEX Pipeline: The ATEX, or “Appalachian to Texas,” pipeline is a 1,230-mile ethane pipeline constructed by Enterprise Products Partners (EPD). MWE connects to the ATEX pipeline from its Houston and CADIZ complex and is the primary supplier of ethane to this pipeline.
- The Utica Marcellus Texas Pipeline: MWE and Kinder Morgan Partners, in November last year, joined to form the UMTP pipeline. The pipeline will transport NGLs produced in the Utica and Marcellus shales to Mont Belvieu, Texas.
Note that SXL, MWE, AMLP, and KMP are all part of the Alerian MLP ETF (AMLP).
Residue gas to market
MarkWest’s infrastructure also provides producers with multiple residue gas outlets, and MWE’S processing complexes have access to all major residue gas takeaway pipelines.
Continue to the following part of this series to find out about MWE’s 2014 guidance.
Browse this series on Market Realist:
- Part 1 - Why MarkWest Energy Partners will focus on investing in shale plays
- Part 2 - A must-know overview of MarkWest’s business segments
- Part 3 - The Marcellus is a key focus area for MarkWest’s 2014 investments
- Basic Materials Industry
- natural gas liquids