Energy Corporation of America and First Reserve Corporation form a Joint Venture Called First ECA Midstream LLC

abarrelfull wrote on 13 Oct 2011 06:04
Tags: n-america pipeline usa

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First Reserve Corporation (“First Reserve”), a leading private investment firm in the energy industry, announced today that it has entered into an agreement to provide an equity commitment of $100 million from its Energy Infrastructure Fund to a joint venture with Energy Corporation of America (“ECA”).

Through the joint venture, First Reserve will own a 50% interest in two newly constructed gathering systems located in Pennsylvania’s Greene and Clearfield counties. Both systems service the Marcellus Shale which has been bolstered by strong drilling results for natural gas. The joint venture will operate under long-term contracts with a fixed take-or-pay structure.

In addition to the initial investment, the joint venture intends to explore the opportunity to develop new or expand existing gathering systems in the region to accelerate the production of additional hydrocarbons. ECA is one of the oldest operators in the Appalachian Basin with a significant acreage position.

“ECA is delighted to have the excellent midstream partner, First Reserve. This partnership will accelerate Pennsylvania infrastructure development and provide natural gas transportation capacity for all the operators in the area,” John Mork, CEO of ECA said.

“We continue to see significant infrastructure investment opportunities in the Marcellus Shale and are excited by our partnership with Energy Corporation of America,” said Mark Florian, Managing Director at First Reserve Corporation. “Given the volume of exploration and production activity in the region, these systems are ideally positioned to provide E&P operators with access to a high quality midstream infrastructure.”

• [ Energy Corporation of America and First Reserve Corporation form a Joint Venture Called First ECA Midstream LLC. First Reserve Commits $100 Million Equity for Marcellus Shale Gathering Systems]

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