Blue Racer is a $1.5 billion joint venture formed in December 2012 by Caiman Energy II and Dominion to own, operate, develop and acquire midstream assets in the Utica Shale and certain adjacent areas in the Marcellus Shale. Blue Racer provides natural gas gathering, compression, dehydrating, treating, processing and transportation services and NGL fractionation and transportation services. Blue Racer also gathers, stabilizes and transports condensate. We believe that Blue Racer’s strategically located assets and contractual relationships with fourteen material customers will allow us to retain and grow our position as a leading midstream energy company serving customers in the Utica and Marcellus shale.
Blue Racer’s assets, which consist primarily of gathering pipelines, processing plants, fractionators and related equipment, form an interconnected midstream “Super System,” which means Blue Racer is able to gather and process natural gas, fractionate NGLs and redeliver residue gas and purity NGL products at multiple locations on its system, regardless of where on its system it receives natural gas or receives NGLs from its producer customers. The backbone of Blue Racer’s “Super System” is a network of natural gas, NGL and condensate pipelines that we believe is one of the largest in the Utica Shale. Our system connects to major natural gas and NGL pipelines, via direct connections or interconnects, that serve markets across the United States. We believe the optionality of accessing multiple end-markets for both residue natural gas and purity NGL products provides additional value for Blue Racer’s producer customers and we believe the connectivity between Blue Racer’s facilities will provide its producer customers with a higher degree of operational reliability.
Blue Racer’s business is underpinned by significant contractual commitments from its customers. These commitments are comprised of multi-year contracts that include various types of commercial arrangements, including acreage dedications, well pad dedications, minimum volume commitments and demand payments. Under contracts with acreage dedications, Blue Racer’s customers commit all of the natural gas production they own or operate from current and future wells drilled within the acreage dedication during the term of the applicable gathering contract. Under contracts with well pad dedications, producers commit all of the natural gas production they own or operate from wells drilled on dedicated well pads.
Blue Racer’s Customers:
- American Energy Marcellus LLC (“AEM”)
- American Energy Utica LLC (“AEU”)
- Chesapeake Energy Corporation (“Chesapeake”)
- CONSOL Energy Inc. (“CONSOL”)
- Eclipse Resources Corp. (“Eclipse”)
- EM Energy Ohio, LLC (“EdgeMarc”)
- Hess Trading Corporation (“Hess”)
- Jay Bee Production Company (“Jay Bee”)
- Noble Energy, Inc. (“Noble”)
- PDC Energy, Inc. (“PDC”)
- R.E. Gas Development LLC (“Rex”)
- TOTAL Gas & Power North America, Inc. (“TOTAL”)
- Utica East Ohio Gathering, LLC (“UEO”)
- Dominion Transmission, Inc. (“DTI”)