Rice and Gulfport Enter Into Midstream Joint Venture in Utica Shale
As reported by Oil and Gas Investor, Rice Midstream Holdings, LLC, a subsidiary of Rice Energy Inc., and Gulfport Energy Corporation have teamed up to build a pipeline gathering and water line system in Ohio’s Utica Shale. Over the next six years, the companies plan to spend a combined $640 million on 165 miles of pipeline that will connect Gulfport’s Utica shale wells in Belmont and Monroe Counties to interstate pipelines. Speaking of the joint venture, Rice’s CEO, Daniel J. Rice IV, stated: “This joint venture will be one of the premier midstream systems in the prolific dry gas core of the Utica…” Gulfport will dedicate about 77,000 leasehold acres and an existing 11-mile pipeline to the joint venture, and Rice will be responsible for constructing and operating the assets. The parties have further agreed that Rice will own 75% of the joint venture and Gulfport will own the remaining 25%. Each partner will be responsible for its proportionate share of costs.