A joint partnership working to bring more natural gas processing ability to the Utica Shale said it has secured $800 million in credit that can be expanded to $1 billion in the future.
Private equity and assets provided by partners Caiman Energy II, LLC and Dominion Resources support the plan by Blue Racer Midstream LLC, to develop what is known as "midstream" processing for the Utica Shale in the next two to three years. Processing would include natural gas gathering, fractionation and transportation.
Wells Fargo Securities, LLC and RBS Securities Inc. acted as joint bookrunners and joint lead arrangers on the credit facility. A syndicate of 19 banks participated in the credit facility. The transaction closed Aug. 16, the company said.
The company, which has described eastern Ohio's Utica Shale wells as producing "fabulous high-rate, rich gas and condensate," also announced it took over operations of the Utica Shale-based Natrium Natural Gas Processing and Fractionation Plant along the Ohio River in Marshall County, W.Va.
Plans to double that plant's capacity are under way to meet the "critical need for processing services in the Utica Shale," the company said.