Production to Product Jeremy Smith
MarkWest Energy Partners
Growth Driven by Relentless Focus on the Customer
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Gathering & Processing
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l One of the largest NGL and natural gas midstream service providers – Gathering capacity of 5.4 Bcf/d
• ~50% Marcellus/Utica; ~50% Southwest
– Processing capacity of 7.6 Bcf/d* • ~70% Marcellus/Utica; ~20% Southwest; ~10% Southern Appalachia
– C2 + Fractionation capacity of 550 MBPD** • ~90% Marcellus/Utica; ~5% Southwest; ~5% Southern Appalachia
l Primarily fee-based business with highly diverse customer base and established long-term contracts
Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
*Includes processing capacity of non-operated joint venture **Includes condensate stabilization capacity
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DenverOffice
TulsaOffice
CanonsburgOffice
CadizOffice
HoustonOffice
Gathering & Processing
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Areas of Operation
NortheastRegion
SouthwestRegionHaynesville&WoodfordShales,GraniteWash,PermianBasin,GulfCoastandOtherAreas
MarcellusShale,UpperDevonian,andUJcaShale
MPLX - Gathering & Processing
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Marcellus & Utica Operations
0 2.9Bcf/d Gathering capacity
5.5Bcf/d Processing capacity
471MBPD C2+ Fractionation capacity
25MBPD Cond. Stabilization capacity
Houston Complex Sherwood Complex Hopedale Complex
Marcellus & Utica Operations
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Volume Growth Driven by Diverse Set of Producer Customers
l MarkWest supports over 20 producer customers and has ~8 million acres of area dedication in Ohio, Pennsylvania, and West Virginia
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1.0
2.0
3.0
4.0
~4.4Bcf/d Marcellus & Utica Gas Processed Marcellus Operations
Utica Operations
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Marcellus & Utica Operations
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2012
Doddridge
Marshall
Wetzel
Harrison
Noble
Butler
Washington
WEST VIRGINIA
PENNSYLVANIA
OHIO
Washington
SHERWOOD
MOBLEY
HOUSTON
Belmont
Monroe
Carroll Jefferson
Greene
Columbiana
Tuscarawas
Tyler
Mahoning
Guernsey
Washington
Ritchie
Pleasants
Ohio
Brooke
Hancock
Beaver
MAJORSVILLE
KEYSTONE
Allegheny
CADIZ
l Processing Plants – 10 plants with 1,175 MMcf/d of capacity
l Fractionation Facilities – 3 facilities with 94 MBbl/d of capacity
l Compressor Stations – 13 stations with ~94,000 Hp of compression
l Miles of Pipeline – ~400 miles of high- and low-pressure gas
gathering, and liquids pipeline
MarcellusFacility
U/caFacility
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Marcellus & Utica Operations
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2016 & Beyond
Doddridge
Marshall
Wetzel
Harrison
Noble
Butler
Washington
WEST VIRGINIA
PENNSYLVANIA
OHIO
Washington
SHERWOOD
MOBLEY
HOUSTON
Belmont
Monroe
Carroll Jefferson
Greene
Columbiana
Tuscarawas
Tyler
Mahoning
Guernsey
Washington
Ritchie
Pleasants
Ohio
Brooke
Hancock
Beaver
MAJORSVILLE
HARMONCREEK
CADIZ
HOPEDALE&CONDENSATE
SENECA
KEYSTONE
Allegheny
MarcellusPlannedFacilityMarcellusCurrentFacilityU/caPlannedFacilityU/caCurrentFacility
l Processing Plants – 32 plants with 5,480 MMcf/d of capacity
l Fractionation & Stabilization Facilities – 14 facilities with 496 MBbl/d of capacity
l Compressor Stations – 28 stations with ~300,000 Hp of compression
l Miles of Pipeline – ~1,250 miles of high- and low-pressure gas
gathering, and liquids pipeline
l Under Development – Additional rich- and dry-gas gathering – 11 processing and fractionation facilities
Gathering & Processing MarkWest’s Footprint in the Tri-State Region
WEST VIRGINIA
PENNSYLVANIA
OHIO
KEYSTONECOMPLEX
HARMONCREEKCOMPLEX(currentlyunderconstruc.on)
MAJORSVILLECOMPLEX
MOBLEYCOMPLEXSHERWOODCOMPLEX
CADIZ&SENECACOMPLEXESMarkWestJointVenturewithEMG
HOPEDALEFRACTIONATIONCOMPLEX
HOUSTONCOMPLEX
OHIOCONDENSATEMarkWestJointVenturewithSummitMidstream
Utica Complex
ATEX Express Pipeline Purity Ethane Pipeline
NGL Pipeline
Mariner East Pipeline
Marcellus Complex
Gathering System
Mariner West Pipeline TEPPCO Product Pipeline
MarkWestJointVenturewithEMG
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Marcellus & Utica Operations
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Raw Natural Gas Production
l Production (Wellhead) – This activity is done by producer
customers – Remove water and contaminants – Initial Production (IP) is typically high
pressure, and declines to a lower pressure over time (decline curve)
– Estimated Unit Recoveries (EURs) determine ultimate profitability (geology of rock and production profiles)
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
Image source: https://cdn2.hubspot.net/hub/367855/file-1535415665-png/xmas_tree_diagram.png?t=1473735940868
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Gathering and Compression
l Gathering and Compression – MarkWest offers this service – Some customers choose to provide
their own gathering and some third parties gather and compress
– Gathering can be either high pressure or low pressure (inlet basis)
– ~150 psig low, ~1000 psig high – Transport natural gas to a processing
facility or other outlet (dry-gas gathering)
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
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Processing and Liquids Separation
l Processing Plants – Recovers heavier hydrocarbons (NGLs)
from high-pressure inlet gas stream – Either ethane-plus (C2+) or propane-plus
(C3+) recovery – Liquids separated from inlet gas stream in
tower, use of distillation controlling temperature and pressure
– Cryogenic process cools gas to minus 150 F in the demethanizer (50 F bottoms temperature, -150 F overhead in ethane recovery mode)
– Typical propane recovery is >99% in ethane recovery mode, and ethane recovery is ~85%
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
image source: http://images.pennwellnet.com/ogj/images/ogj3/9715jcu05.gif
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N2 -319
-
-
Boiling Points at 1 atm
NGL Transportation
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
l Mixed NGLs – Transport liquids to fractionators – Propane and heavier NGLs (C3+) – Purity ethane (C2) is processed remotely at
cryogenic plants rather than at fractionator sites and transported via pipeline
– C3+ transported by pipelines, railcar or truck
Image source (modified): https://www.ihrdc.com/els/po-demo/module14/figures/fig_012.gif
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Fractionation
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
l Fractionators – Receive propane and heavier liquids via
pipeline, truck import, or rail import – Feed is sequenced through distillation
columns designed to boil off desired product and condense the heavier components into liquid
– Separated into purity components [propane (C3), isobutane (iC4), normal butane (nC4), natural gasoline (C5+)]
– Store finished purity products in holding tanks if needed or deliver to outlet
– Transport finished purity products via pipeline, rail, truck, or barge
Propane+ Feed
Butane+ Feed
Mixed Butane Feed
Propane
Natural Gasoline
isoButane
normalButane
DeProp
DeBut
DIB
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NGL Marketing
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Raw Natural Gas Production
Processing Plants
Mixed NGLs
Fractionation Facilities
NGL Products
• Ethane • Propane • Normal Butane • Isobutane • Natural Gasoline
Gathering and
Compression
l NGL Products – Market purity products on behalf of
producer customers – Deliver products via:
• Pipeline • Rail • Truck • Barge
– Products used in petrochemical plants, refineries and homes
Key Marketing Metrics l 200,000 Barrels per day of NGL sales
l 36,900 Dekatherms per day of gas purchases l 190,000 Dekatherms per day of gas sales
l 4,675 Railcar shipments per month from all facilities
l 3,350 Truck liftings per month from all facilities
l Monitor and report macro gas and NGL market conditions
l Execute hedge strategy
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§ Petrochemical feedstock for steam crackers ethylene
§ Consumable items § Ethylene based plastics § PVC § Adhesives § Solar Panels
§ Logistics: Pipe, Rail, Ship
Ethane, Off Gas
Propane
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§ Commercial and residential use: § Heat & grills § Crop drying § Forklifts
§ Petrochemical feedstock for steam crackers propylene
§ Logistics: Truck, Pipe, Rail, Ship
Propylene
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§ Consumable items § Plastic storage, packaging & films § Toys § Automotive parts § Medical equipment § Gasoline § Windmill § Carpet
§ Logistics: Pipe, Rail, Truck, and Ship
Benzene
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§ Consumable Items: § Styrofoam § Nylon § Rubber § Fiberglass
§ Logistics: Pipe, Barge, Rail § Challenges:
§ Health risks § Regulatory environment
Cumene
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§ Consumable Items: § Construction materials – pressboard,
sauder, laminate § Appliances § Automotive parts § Polycarbonate lenses, headlight covers § CDs
§ Logistics: Barge and Truck § Challenge: Shifting demand
Toluene
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§ Consumable Items: § Detergents § Paint & paint thinner § Insecticides § Adhesives § Industrial solvents § Gasoline blending § Medications
§ Logistics: Barge, Rail and Truck
Xylenes
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§ Consumable Items: § Plastic bottles § Clothing § Dyes § Gasoline blending § Medication
§ Logistics: Pipeline, Barge, Truck and Rail § Challenge: Declining domestic demand
Sulfur
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§ Consumable Items: § Fertilizer § Detergents § Polymerization agents § Acids (Industrial use)
§ Logistics: truck, rail, ship
§ Solid (prilled) & Liquid (molten) sales
§ Challenge: Safety – H2S
Specialties Product Reference
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Product NormalUse ConsumerItems RefineryAlternaJvetoSales
Ethane,OffGas Plantfuel,furthersplitforpetrochemicalsprocessing PVCpipes,boAles(PE),Ziplocbags Plantfuel
Propane Homehea/ng,industrialfuel,petrochemicalprocessing Homeheat,grills,auto/truckfuel,forkliHs,agriculturalweedcontrol,plas/cs,packaging Plantfuel
Propylene Polypropylene,cumene,acrylonitrile Plas/cstoragetotes,toys,disposableboAles(PP),packaging,seecumenebelow Alkylate,fuel,cumene
Benzene Cumene,styrene Styrofoam,nylon,polymers,elas/cizers(asphaltSBS),rubber,fiberglass,seecumeneabove Cumenetogasolineblending
Toluene Xylene,gasolineblending,solvents Detergents,paint,paintthinner,insec/cides,adhesives,seexylenebelow Blendtogasoline
Xylene Polyester,plas/cs,gasolineblending Plas/cboAles(PET),clothing,dyes,paint,paintthinner,adhesives Blendtogasoline
Cumene PhenolPolycarbonatelenses,streetlightcovers,headlights,sauderfurniture,pressboardconstruc/onmaterials,reusableboAles,electronics,CDs,appliances
Decreasedrates;blendtogasoline
Sulfur Sulfuricacid;fer/lizers Fer/lizer,paper,watertreatment,/res,baAeries,detergents Prill&export;landfill
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Other Products from Shale You Use Every Day www.energyindepth.org www.groundedinfact.com www.afpm.org
ELECTRONICS
WINDOW FRAMES
TOOTHBRUSH
TOILETRIES MEDICINE
SHOES
CLOTHING
PAINT
AUTOMOBILE
FERTILIZER
SIDING CARPET
APPLIANCES
KITCHEN UTENSILS
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Jeremy Smith
Jeremy Smith is currently Director of Business Development– Northeast Region for MarkWest Energy Partners, L.P. , with responsibility for all commercial activities involving MarkWest’s midstream assets in Pennsylvania, Ohio, West Virginia, Kentucky and Michigan. Prior to his role as Director of Business Development, Jeremy served as: l MarkWest’s General Manager of West Virginia– With responsibility for
operations of West Virginia Marcellus Shale assets which included three processing plants and associated pipelines.
l He joined MarkWest in 2012 as Area Manager of West Virginia. l From 2000 to 2012, Jeremy worked for Dominion Transmission, Inc.,
holding various positions in compressor services, as well as positions in operation’s supervision, construction management, and field engineering.
l Prior to joining Dominion, Jeremy worked for Honda of America as a body design engineer.
l Jeremy graduated from West Virginia University with a bachelor degree in Mechanical Engineering in 1999.
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