MarkWest Utica EMG LLC, which is a joint venture between
natural gas processor and distributor,
MarkWest Energy Partners LP
) and The Energy and Minerals Group (EMG), reported the start of
binding open season for the planned Y-grade pipeline on Nov 11,
The open season is for the shippers willing to carry natural
gas liquids (NGLs) developed from the Utica and Marcellus shales
to the Mont Belvieu, Texas-based proposed fractionation facility.
The season is expected to close by Dec 20, 2013.
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The pipeline is expected to start functioning from the second
quarter of 2016, depending on the responses from the open season
along with regulators' approval and capital improvements.
The Y-grade pipeline project will include the Tennessee Gas
Pipeline system of
Kinder Morgan Energy Partners LP
) - the largest independent owner and operator of petroleum
product pipelines in the U.S. The Tennessee Gas Pipeline -
which spreads over roughly 1,000 miles - presently carries
natural gas from Mercer, PA, to Natchitoches, LA. The development
will also include a new 200-mile pipeline which will extend from
Natchitoches to Mont Belvieu.
MarkWest Utica added that the pipeline project will initially
transport 150,000 barrels per day (bpd) of NGL and later 400,000
bpd by adding pump stations.
Once the project starts operating, the Gulf Coast based consumers
are expected to get access to NGLs produced and carried from the
resource plays of Utica and the Marcellus shale.
Denver, Colorado-based MarkWest Energy, a master limited
partnership, is engaged in the gathering, processing and
transmission of natural gas, transportation, fractionation and
storage of NGLs, and the gathering and transportation of crude
MarkWest Energy currently carries a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can look at energy stocks like
SM Energy Co.
VOC Energy Trust
) that offer value. Both the stocks sport a Zacks Rank #1 (Strong