Caiman and The Marcellus

The Marcellus Shale formation, which extends across parts of West Virginia in the northern Appalachian Basin and into Pennsylvania and New York, has stirred considerable excitement over the past two years for its potential to bring larger volumes of natural gas to major markets in the northeastern United States. By some estimates, it is the second-largest known natural gas play in the world and the largest geographic gas-producing area in the U.S.

While natural gas production in the region has long taken a distant second to coal production as the chief energy export, elected officials are demonstrating their own sense of excitement over the new prospect of more prolific development of the region's natural gas resources, particularly in the rich-gas production areas of northwestern West Virginia and western Pennsylvania. State and regional leaders have indicated they are enthusiastic about new jobs, economic development and growth. These officials are helping to create a business-friendly environment that continues to build to strong partnerships.

Caiman Energy is excited about this new growth and these new partnerships as well. By the ned of 2014, we will have invested more than $1.3 billion in the rich-gas regions of West Virginia and Pennsylvania. At the end of 2011 had deployed in approximately $450 million in the region. Beginning in the summer of 2009, we have focused our investments on building the capital-intensive infrastructure required to bring natural gas and related hydrocarbons from the wellhead to markets in New York, Philadelphia and throughout the Northeast. The Caiman team is proud to have stepped up alongside exploration and production companies to make the early and ongoing financial investments necessary to ensure that this region of the Marcellus will realize its vast potential.

OUR COMMITMENT, CAPABILITIES & ASSETS (Map)

When Caiman Energy’s partners first looked at the Marcellus Shale in 2009, our reaction was immediate, positive and productive. Since then, our commitment in terms of dollars and presence has grown steadily. We have completed our initial cryogenic processing facility, Fort Beeler Processing Plant I, near Cameron, West Virginia, and it is online with a capacity of 120 million cubic feet per day (mmcf/d). By late 2012, we expect to have processing capacity of 520 mmcf/d at Fort Beeler with another 400 MMcf/d coming online in October, 2013 at our Ft. Wetzel site five miles to the west, bringing total processing capacity to 920 MMcf/d by October, 2013. We will bring a de-ethanizer online at Ft. Beeler in September, 2013 (30,000 barrels per day) and expect to add another de-ethanizer at Ft. Wetzel as market demand requires.

A 25-mile NGL pipeline will connect these facilities to our new fractionation facility which is under construction along the Ohio River in Marshall County. With an initial capacity of 12,500 barrels per day (bbls/d) online by April 1, 2012, this facility will offer truck, rail and river barge options to support transportation of natural gasoline, butane, purity propane and other products to valuable markets. We expect to have an additional 30,000 bbls/d in fractionation capacity (with a butane splitter) online by October 1, 2012, bringing total fractionation capacity to 42,500 bbls/d by the end of 2012.

Caiman's strategic alliances with TETCO and Inergy provide producers on the Caiman system with dependable take-away service. We partner with Inergy to distribute our customers' NGLs to wholesale and retail markets. Inergy is one of the largest propane marketers in the country.

We are excited about the prospects for the Marcellus Shale and especially for the rich-gas region of northwestern West Virginia. It is a strong, optimistic place to be, and as the nation reaches toward its economic recovery, we see nothing but good things ahead for the Marcellus Shale and the region.

Midstream Development in the Marcellus (Caiman Energy presentation, March 2011)
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