Dominion Resources Inc, Caiman Energy II To Form Blue Racer Midstream, $1.5 Billion Joint Venture To Develop Utica Shale Midstream Assets

Dominion Resources Inc and Caiman Energy II, LLC, (Caiman) have announced they are forming a $1.5 billion joint venture to provide midstream services to natural gas producers operating in the Utica shale in Ohio and portions of Pennsylvania. The companies expect to close on the joint venture by the end of the year. The joint venture, Blue Racer Midstream, LLC, will be an equal partnership between Dominion and Caiman, with Dominion contributing midstream assets and Caiman contributing private equity capital. The joint venture will leverage Dominion's existing presence in the Utica with additional new capacity designed to meet producer needs as the Utica shale acreage is developed. Midstream services offered will include gathering, processing, fractionation, and natural gas liquids transportation and marketing.