MarkWest Energy Partners, L.P. has agreed to provide gas processing services for Chevron Corp. and Cimarex Energy Co. in the Permian Basin.
As part of the long-term, fee-based agreement MarkWest will install a 200 million cubic feet per day cryogenic gas processing plant in Culberson County, Texas. The new Hidalgo Complex is scheduled to start operating in the second quarter of 2016.
Cimarex and Chevron formed a collaboration in June 2013 for joint development of their combined Delaware Basin acreage in Culberson County.
Welcoming the new agreement, MarkWest's chairman, president and CEO Frank Semple said: "MarkWest has provided midstream services for Chevron in East Texas for more than a decade and we are privileged to have the opportunity to serve them, as well as our new customer and operator of the joint development, Cimarex Energy."
Separately, MarkWest said that the company and its subsidiary MarkWest Energy Finance Corp. have closed a $1.2 billion offering of senior notes due 2025, which is expected to bring in net proceeds of some $1.175 billion.
Denver, Colorado-based MarkWest Energy Partners is engaged in the gathering, processing and transportation of natural gas and the transportation, fractionation and storage of natural gas liquids. It also gathers and transports crude oil.
The company has a presence in a number of natural gas resource plays, including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.