NGL Marketing Services and Logistics
The NGL Marketing team markets and sells all of the NGL purity product produced at our Northeast US fractionators located at Houston, PA, Siloam, KY, Hopedale, OH and Bluestone, PA. Each of our facilities produce export quality low-ethane propane, iso-butane, high-purity normal butane and natural gasoline. Both our normal butane and natural gasoline meets the stringent requirements for direct blending into motor fuel. Since June of 2012, MarkWest has been exporting propane from the Marcus Hook Sunoco terminal to Northwestern European customers and Central and South American customers. Butane and natural gasoline are exported via rail to customers in Western and Eastern Canada. MarkWest offers a variety of innovative marketing programs tailored to fit our customers' needs, such as offering several different logistical options for delivering product where and when it is needed.
Y-Grade Fractionation and Marketing Services
The NGL Marketing team also provides transportation, fractionation, and marketing services to producers to fractionate their Y-grade stream at our fractionation facilities in Siloam, KY, Houston, PA, and Hopedale, OH. We can offer keep-dry options at your plant locations or we can offer to take your product directly at our fractionators. Our Marketing Representatives are waiting to help you.
MarkWest has over 1.3 million barrels of storage available at our plant locations and proprietary storage on a third-party pipeline facility owned by TEPPCO. Please check with your Marketing Representative to discuss the benefits these storage facilities can offer you.
- Annual Supply Contracts - With summer/winter ratios, these contracts offer year-long supply with monthly obligations.
- Spot Contracts - Product is priced by the gallon based on current prevailing market factors and location.
- Exchange Contracts - Allows exchange of product between two facilities where the index base is of equal value. Differentials are applied.
- Retail Management Services (RMS) - We offer a managed services option for the inventory management, distribution, and logistics of propane for our propane retail customers. With the RMS software package and system, MarkWest is able to calculate a customer’s daily inventory needs and is then able to schedule the delivery of propane required to serve our customers end users. Imagine simplifying the entire propane inventory process while doing so at competitive prices. RMS is able to free management of everyday supply decisions and allows them focus on customer needs.
- PTO Contracts - Pipeline Transfer Order type of sales contracts for volumes to be shipped on the TEPPCO pipeline system to a downstream facility for either storage or truck rack delivery.
MarkWest offers competitive pricing programs from which customers are able to suit their individual business needs:
- Plant Posting - Product is priced by MarkWest based on current prevailing market facts.
- Differential Pricing - Pricing is based on an OPIS TET index commodity pricing plus a seasonal (summer/winter) differential.
- Daily, weekly, and monthly index averages - The index portion of the contract can be calculated based on a daily, weekly, or monthly average as the basis for the pricing.
- Fixed Fee - Product is priced at a flat fee locking in prices. This becomes a "take or pay" obligation to our customers.
- Delivered Pricing - Whether the product needs to be transported by truck, rail, or pipeline, we can arrange the transportation and send one simple invoice for both freight and product.