MarkWest Utica Initiates Open Season - Analyst Blog


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MarkWest Utica EMG LLC, which is a joint venture between natural gas processor and distributor, MarkWest Energy Partners LP ( MWE ) and The Energy and Minerals Group (EMG), reported the start of binding open season for the planned Y-grade pipeline on Nov 11, 2013.

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.

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 ( KMP ) - 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 oil.

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. ( SM ) and VOC Energy Trust ( VOC ) that offer value. Both the stocks sport a Zacks Rank #1 (Strong Buy).

KINDER MORG ENG (KMP): Free Stock Analysis Report

MARKWEST EGY PT (MWE): Free Stock Analysis Report

SM ENERGY CO (SM): Free Stock Analysis Report

VOC ENERGY TRST (VOC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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