NGL Marketing

The NGL Marketing team markets and sells approximately 500 million gallons of natural gas liquids annually which are produced at MarkWest's Kentucky and Pennsylvania fractionating facilities. MarkWest also has an off-gas fractionation processing facility located in Corpus Christi, Texas with pipeline sales to the Belvieu, Texas markets. Our facilities produce high quality propane, iso-butane, normal butane, natural gasoline, and BG mix. We offer 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. We also own and operate 21 pressurized trailers, 59 pressurized rail cars, and have barge loading capabilities at our Kentucky facility.

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 Kentucky fractionation facility in Siloam, Kentucky.

Storage

MarkWest has 11 million gallons of propane cavern storage at its Kentucky fractionation facility and has proprietary storage on a third-party pipeline facility owned by TEPPCO at Todhunter located in Middletown, Ohio.  Please check with your Marketing Representative to discuss the benefits these storage facilities can offer you.

 Marketing Programs

  • Annual 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.
  • 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 customers daily inventory needs and is then able to schedule the delivery of propane required to serve our customers end users.  We are able to ensure the reliable delivery of the product by tapping into our 125 million gallons of storage located in the Ohio Valley region.  Imagine simplifying the entire propane inventory process while doing so at competitive prices.  RMS is able to free management of everyday supply decisions and lets 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.

Pricing

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.
  • Fixed Fee - Product is priced at a flat fee locking in pricing.  This becomes a "take or pay" obligation to our customers.
  • 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.
  • Delivered Pricing - Whether the product needs to be transported by truck or rail, we can arrange the transportation and send one simple invoice for both freight and product.