First Reserve Corp., a private investment firm in the energy industry, 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. 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.

“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. “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.” 

Source: First Reserve Corp.