Williams, Boardwalk Achieve Pipeline Agreement
TULSA, Okla. -- Williams Cos. and Houston-based Boardwalk Pipeline Partners LP announced Wednesday that they have executed a joint venture agreement that would continue development of Bluegrass Pipeline, a project intended to transport natural gas and natural-gas liquids from the Utica and Marcellus shale plays to the Gulf Coast.
The Bluegrass Pipeline would be constructed from gas-producing areas of the Utica shale in eastern Ohio and the Marcellus shale regions of Pennsylvania and West Virginia. The pipeline would then connect in Hardinsburg, Ky., with Boardwalk's Texas Gas Transmission LLC's system. The pipeline route has not been announced.
The pipeline would serve the expanding petrochemical and natural-gas export market on the Gulf while also stimulating the petrochemical business in the Northeast, Williams said in press release.
The first phase of the proposed pipeline would provide producers with 200,000 barrels per day of mixed NGLs (natural gas liquids) take-away capacity from Ohio, West Virginia and Pennsylvania. The second phase would expand to 400,000 barrels a day to meet market demand, primarily by adding liquids pumping capacity.
Part of the agreement includes construction of a new large-scale fractionation plant and storage silos in Louisiana and pipeline that connects these plants to a Texas Gas line converted to handle natural-gas liquids.
Both companies are also exploring the development of a new export liquefied petroleum gas terminal and related plants on the Gulf Coast to provide customers with access to international markets.
Williams and Boardwalk expect that the project could be in service in late 2015. This assumes all conditions are met.
"This timely joint venture with Boardwalk would link two liquids-rich resource plays in the Northeast U.S. with the expanding petrochemical industry on the Gulf Coast, providing producers in Ohio, West Virginia and Pennsylvania with the ability to access large and growing markets," Alan Armstrong, president and CEO of Williams, said in a prepared statement.
Stan Horton, president and CEO of Boardwalk, said in his statement that the pipeline project would help leverage the company's natural gas liquids assets in Lake Charles, La., without interrupting service to existing natural gas customers.
"We are pleased to have formalized this joint venture with Williams to develop an industry solution of connecting prolific Marcellus and Utica liquids production to the markets where these products are in high demand," he said.
Completion of the project is subject to several conditions that include approval from the Federal Energy Regulatory Commission and customer contracts sufficient to support the project.
Published by The Business Journal, Youngstown, Ohio.
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