The JV Blue Racer Midstream will be an equal partnership between the two companies.
As per the agreement, Dominion will contribute its existing midstream assets to the JV, while Caiman will bring in the private equity capital.
Blue Racer Midstream is expected to further enhance Dominion’s presence in Utica with additional new capacity to meet the Utica producers’ increased demand for midstream services.
Dominion will provide its gas gathering, processing, fractionation, and natural gas liquids transportation and marketing services to the JV.
Caiman Energy chairman and chief executive officer Jack Lafield stated, "With our experience in developing midstream businesses and our $800 million in equity commitments for the joint venture, we can quickly leverage Dominion’s assets, expertise and relationships to meet producers’ needs as they fully develop their natural gas acreage."
Dominion chairman, president and chief executive officer Thomas F Farrell II said the targeted portion of the Utica shale is producing rich gas stream for which additional gathering and processing capacity should be developed.
"This additional flexibility will be valuable as we proceed with our growth plan. Under the Utica joint venture, Dominion expects to benefit from cash received for its assets and pro-rata earnings from the joint venture," Farrell added.
