Energy Transfer Partners to Invest $1.5 Billion for Marcellus Shale Midstream Project in Pennsylvania

Energy Transfer Partners LP announced that it will invest $1.5 billion for a new pipeline system and processing facilities to serve the Marcellus Shale in and around Butler County, Pennsylvania.  The new facilities are expected to be operational by mid-2017.  Natural Gas Intelligence reported that the pipeline and facilities are part of a long-term natural gas gathering agreement between ETP and EdgeMarc Energy to serve EdgeMarc’s active wells in the region, but the facilities are also expected to accept third party gas in the future.  The project plans include over 100 miles of high pressure pipeline and a cryogenic gas processing plant that will be located in western Pennsylvania near Butler County, providing an additional 440 MMcf/d of gathering capacity in the area.  The plant will deliver gas to ETP’s Rover pipeline, which is expected to deliver gas to markets in the Midwest, Great Lakes and Gulf Coast regions beginning in 2017.  ETP’s pipeline will also deliver natural gas liquids to the Marcus Hook Industrial Complex on the Delaware River, which is being repurposed for natural gas liquid storage, processing and distribution to foreign and domestic markets.

Pittsburgh Post-Gazette Reports on Race to Ship NGLs to Gulf Coast

The Pittsburgh Post-Gazette provides coverage today on the race to ship natural gas liquids (NGLs) from Pennsylvania to the Gulf Coast.  As indicated in the story, several companies have announced plans to build or convert pipelines to transport NGLs from the Marcellus and Utica to facilities in Beaumont and Mount Belvieu, Texas.  The story also discusses the potential impact of the petrochemical facility that Royal Dutch Shell may build in Beaver County, Pennsylvania.

Pipeline Project for Natural Gas Liquids Pursued for Marcellus and Utica

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.