Midstream energy company MarkWest Energy Partners LP and ArcLight Capital Partners LLC have formed a joint venture dedicated to the construction and operation of the Arkoma Connector pipeline, a 50-mile interstate pipeline that will provide roughly 625,000 dekatherms per day of Woodford Shale takeaway capacity and interconnects with Midcontinent Express Pipeline and Gulf Crossing Pipeline.

Under the terms of the joint venture, ArcLight is acquiring a 50% equity interest in the pipeline for $62.5 million. MarkWest will operate the pipeline and ArcLight will pay a fee to MarkWest to manage the joint venture.

Following operational commencement of the pipeline, the joint venture partners will invest equally in the ongoing costs associated with operating or expanding the pipeline.

"We are pleased to partner with ArcLight on the Arkoma Connector pipeline, a strategic project that will result in additional market access for our Woodford shale producer customers and provide long-term value to MarkWest unitholders," said Frank Semple, chairman, president, and CEO of MarkWest Energy Partners.

"This joint venture demonstrates our commitment to strategic growth projects while at the same time achieving our balance sheet and distribution objectives," he continued.

Morgan Stanley is acting as MarkWest's exclusive financial advisor in connection with the formation of the joint venture. Stifel, Nicolaus & Co. served as financial advisor to ArcLight.