Production to Product › › resource › resmgr › ...l Production (Wellhead) – This activity is done by producer customers – Remove water and contaminants – Initial Production

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


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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

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~4.4Bcf/d Marcellus & Utica Gas Processed Marcellus Operations

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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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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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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Processing Plants

Mixed NGLs


NGL Products


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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Processing Plants

Mixed NGLs


NGL Products


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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Processing Plants

Mixed NGLs


NGL Products


Gathering and

Compression

image source: http://images.pennwellnet.com/ogj/images/ogj3/9715jcu05.gif

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N2 -319

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-

Boiling Points at 1 atm

NGL Transportation

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Processing Plants

Mixed NGLs


NGL Products


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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Processing Plants

Mixed NGLs


NGL Products


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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Processing Plants

Mixed NGLs


NGL Products


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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Documents

Production to Product › › resource › resmgr › ...l Production (Wellhead) – This activity is done by producer customers – Remove water and contaminants – Initial Production