Shale Energy Law Blog
Pipeline Project for Natural Gas Liquids Pursued for Marcellus and Utica
March 12, 2013
Williams and Boardwalk Pipeline Partners announced that they have entered into a letter of intent to form a joint venture to build new pipelines and upgrade existing ones to provide a pathway for natural gas liquids (NGLs) like ethane to move from the Marcellus and Utica shale plays to petrochemical and export facilities in the U.S. Gulf Coast and the Northeast U.S., the Post-Gazette reports. The proposed “Bluegrass Pipeline” would provide producers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania, and such capacity could be increased to 400,000 barrels per day to meet market demand. Williams and Boardwalk hope that by combining new construction with existing pipelines the Bluegrass Pipeline can be placed into service and begin serving customers by the second half of 2015. The plan requires approvals from the companies’ boards and from regulators, which Williams and Boardwalk hope to receive this year.