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New Pipeline Project Would Transport NGLs to Texas
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HOUSTON -- Kinder Morgan Energy Partners LP and MarkWest Utica EMG LLC announced Monday a joint venture to build a pipeline project that would transport natural gas liquids produced for the Utica and Marcellu shles to Mont Belvieu, Texas.
The binding open season to solicit commitments to use the pipeline began Monday and ends Dec. 20.
“This project will provide consumers on the Gulf Coast with access to a new source of NGLs from the Utica and the Marcellus shale resource plays,” said Don Lindley, president of NGLs for Kinder Morgan Energy Partners. “Through Kinder Morgan and MarkWest Utica EMG’s existing pipeline footprint, this project is capable of accessing all of the processing facilities in the Northeast in a cost effective manner.”
The pipeline would involve converting more than 1,000 miles of KMP’s 24- and 26-inch Tennessee Gas Pipeline system, currently in natural gas service, from Mercer, Pa., to Natchitoches, La., and building approximately 200 miles of new pipeline of similar diameter from Natchitoches to a proposed Kinder Morgan/MarkWest Utica EMG joint venture fractionation facility with a third party that has existing facilities at Mont Belvieu.
Subject to shipper commitments, regulatory approvals and necessary capital improvements, the pipeline is targeted to be in service during the second quarter of 2016. The pipeline would have an initial design capacity of 150,000 barrels per day (bpd) and would be expandable to 400,000 bpd with the addition of pump stations.
“We are excited about the announced partnership with Kinder Morgan and the planned Y-grade pipeline solution from the Northeast,” stated Frank Semple, chairman, president and CEOof MarkWest. “We believe this project will provide our producer customers additional optionality and value for their production out of the Northeast shales.”
Kinder Morgan Energy Partners is a pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 54,000 miles of pipelines and 180 terminals.
MarkWest Energy Partners, based in Denver, is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has a leading presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.
SOURCE: Kinder Morgan Energy Partners LP.
Published by The Business Journal, Youngstown, Ohio.
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