MarkWest Energy Partners LP (MWE) said that it has closed the sale of its steam methane reformer facility currently being constructed at its Javelina processing facility in Corpus Christi, Texas, to Air Products and Chemicals, Inc. (APD) for proceeds of about $73.1 million.
Under the terms deal, Air Products will complete the construction of the SMR, which is expected to be on-stream in March 2010.
In conjunction with the purchase and sale agreement, the companies executed a long-term supply agreement whereby Air Products will provide hydrogen and steam to MarkWest.
The hydrogen produced by the SMR facility, together with hydrogen generated by the Javelina plant, will be sold to MarkWest's existing refinery customers.
MarkWest intends to use the proceeds from the sale to pay down amounts outstanding under MarkWest's revolving credit facility and to fund growth capital initiatives.
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