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    EnLink to build new Utica pipeline and related facilities

    EnLink Midstream

    The EnLink Midstream companies – EnLink Midstream Partners LP (NYSE:ENLK) (the Partnership) and EnLink Midstream LLC (NYSE:ENLC) (the General Partner) – plan to construct a new 45-mile, 8-inch condensate pipeline and six natural gas compression and condensate stabilization facilities that will service major producer customers in the Utica shale play, including Eclipse Resources. The total investment for the expansion project is over $250 million, roughly doubling the capital EnLink Midstream has invested in the Ohio River Valley to more than $500 million.

    As a component of the project, the Partnership has entered into a long-term, fee-based agreement with Eclipse Resources for compression and stabilization services and for the purchase of stabilized condensate. Eclipse Resources operates four horizontal rigs in the Utica shale play and plans to add an additional two rigs by year’s end.

    The new-build stabilized condensate pipeline will connect to the Partnership’s existing 200-mile pipeline in eastern Ohio and West Virginia, providing producer customers in the region access to premium market outlets through the Partnership’s Bells Run barge facility and Black Run rail terminal. The pipeline, which is expected to be complete in the second half of 2015, will have an initial capacity of approximately 50,000 barrels per day (bpd) and is expandable based on customer interest. The Partnership expects to hold an open season for the pipeline in the fall.

    The Partnership will also build and operate six natural gas compression and condensate stabilization facilities in Noble, Belmont, and Guernsey counties. Upon completion, the facilities will have a combined capacity of 560 million cubic feet per day (MMcf/d) of natural gas compression and 41,500 bpd of condensate stabilization. The Partnership expects the first two compression and condensate stabilization facilities to be operational in the second half of 2014 and the remaining four facilities to be operational by the end of 2015.

    In support of the project, the Partnership will leverage and expand its existing midstream assets in the region, including increasing condensate storage capacity and handling capabilities at its Bells Run barge terminal on the Ohio River. The Partnership will add 120,000 barrels of above ground storage, bringing its total storage capacity at the barge facility to over 360,000 barrels. Additionally, the Partnership will increase the flexibility of its existing and new assets to handle and ship multiple grades of crude oil and stabilized condensate. The Bells Run barge terminal provides access to leading crude and condensate markets in the Utica Region and these enhancements will enable further growth in the near and long term.

    The Partnership will also utilize its Black Run rail terminal to export growing volumes of crude oil and stabilized condensate. The rail facility offers customers in the Utica shale an existing solution to export multiple products, including light oil condensate and various grades of crude oil, at a rate of 24,000 bpd.

    The new condensate pipeline and gathering system, as well as the natural gas compression and condensate stabilization facilities, including the two stabilization facilities announced recently for Antero Resources, represent a major expansion of EnLink Midstream’s assets in the Utica shale. Following completion of these projects, the Partnership will own and operate over 250 miles of pipeline; 11 natural gas compression and condensate stabilization facilities, with a total capacity of 1.2 billion cubic feet per day and 60,000 bpd, respectively; a fleet of over 110 trucks; and eight brine disposal wells.

     

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