Chesapeake to Build Natural Gas Pipeline, Processing Plant in Ohio (CHK, EVEP, TOT)

Chesapeake Energy Corp. (NYSE: CHK) has announced plans to build a $900 million mid-stream complex that includes a natural gas processing facility and a pipeline system in eastern Ohio to handle the volumes of gas and liquids the company is producing at the Utica shale play. A wholly-owned subsidiary of Chesapeake will own 59% of the project and two other partners, including EV Energy Partners L.P. (NASDAQ: EVEP), will own the rest. Cheseapeake’s partner in the Utica shale play, Total SA (NYSE: TOT), has an option to participate at a later date.

The complex will process natural gas and natural gas liquids (NGLs) with an initial capacity of 600 million cubic feet/day, NGL storage capacity of 870,000 barrels, and fractionation capacity of 90,000 barrels/day. The complex is expected to begin operations by mid-2013.

Chesapeake’s shares fell more than -1% in after-hours trading, following the announcement.