MarkWest Energy buys Keystone gas processing plants in Pennsylvania
MarkWest Energy on Tuesday announced the closing of its acquisition of Keystone Midstream Services, which it bought from Stonehenge Energy Resources and subsidiaries of Rex Energy and Sumitomo.
The acquisition price was $512 million.
Keystone’s assets are located in Butler County, Pennsylvania, and include two cryogenic gas processing plants totaling 90 million cubic feet/day of processing capacity, a gas gathering system and associated field compression.
Concurrent with the closing of the deal, Rex Energy and Sumitomo have dedicated an 895-square-mile area to MarkWest, the company said.
MarkWest will gather and process rich gas, and fractionate the natural gas liquids under long-term, fee-based agreements.
MarkWest’s acquisition of Keystone expands the partnership’s position in the liquids rich Marcellus Shale area into northwest Pennsylvania and eastern Ohio, according to the company.
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