US based EQT Corp has agreed to sell its natural gas processing operations in Langley, Kentucky, and a related natural gas liquids (NGL) pipeline to MarkWest Energy Partners for $230m.
The Langley processing complex includes a 100 million cubic feet per day (mmcfd) cryogenic processing plant, a 75mmcfd refrigeration processing plant, and approximately 28,000 horsepower of compression.
Following the completion of the acquisition, MarkWest will begin the installation of a new 60mmcfd cryogenic processing plant for expansion of the Langley cryogenic processing capacity.
In conjunction with the closing of the sale of the Langley plant, EQT will execute a long-term agreement with MarkWest to provide processing services for its Kentucky Huron/Berea shale gas and to extend its existing agreement with MarkWest for NGL transportation, fractionation, and marketing services until 2022.
MarkWest will also complete the Ranger NGL pipeline, currently under construction, to allow NGLs recovered at the Langley processing complex to be delivered to MarkWest’s Siloam fractionation, storage, and marketing complex in South Shore, Kentucky.