Under the amendment, CONSOL Energy, through a subsidiary contracted for the full 200,000 Mcf per day of capacity in MarkWest’s Majorsville III plant in US.
Previously, the company contracted 30,000 Mcf per day in MarkWest’s Majorsville II processing plant.
At the close of the joint venture agreement between CONSOL Energy and Noble Energy last year, associated agreements were assigned in part to Noble Energy.
The agreements cover the fractionation and sale of the NGLs out of MarkWest’s Houston, PA fractionation and marketing complex.
There are associated agreements are expected to be split evenly by both companies at the end of January 2012.
These agreements will enable Noble Energy to continue its development efforts in the wet gas portion of the joint venture acreage.
Currently, horizontal wells are being drilled while top holes on two Majorsville drill pads have already been completed.
CONSOL Energy anticipates first production from this area in Q2 2012.
CONSOL Energy and Noble Energy anticipate 20 well completions at Majorsville by the end of year.
The residue gas from the MarkWest’s Majorsville plant will initially be sold into long-term firm transportation agreements that CONSOL Energy’s subsidiary CNX Gas Company has under contracts on Columbia Transmission and Texas Eastern Pipelines.
