RGP, AEU Form JV To Build Utica Ohio River Project

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Regency Energy Partners (RGP) LP and American Energy – Midstream LLC announced that they have entered into a joint venture agreement for the construction and operation of Regency’s previously announced Utica Ohio River project. In addition, RGP and American Energy – Utica LLC (AEU) will enter into a gathering agreement for gas produced from the Utica Shale in eastern Ohio by AEU. Regency and AEU will contribute all previously signed agreements to the joint venture. These agreements include volume commitments and large acreage dedications. As a result, Regency and AE-MidCo will upsize the project to accommodate over 2 Bcf/d of firm volume commitments. These commitments represent the majority of the projected volumes in the 52-mile footprint of the pipeline.
  The upsized project will include construction of a 52-mile, 36-inch gathering trunkline that will be capable of delivering up to 2.1 Bcf/d to Rockies Express Pipeline (REX) and Texas Eastern Transmission on the southern end of the line. Additionally, there is the potential to connect to the interstate grid on the northern end of the trunkline which would increase overall system deliverability to 3.5 Bcf/d. The project will also consist of the construction of 25,000 horsepower of compression at the REX interconnect. The full project is expected to be completed in the third quarter of 2015.