Enterprise Products Partners will build an ethane pipeline from the liquids-rich Marcellus and Utica shale plays to the petrochemical markets on the US Gulf Coast, the Houston-based company said Tuesday.
Citing long-term, 15-year commitments from producers in the northeastern US and strong demand for ethane as a chemical feedstock for ethylene production, Enterprise said the 1,230-mile pipeline will have the capacity to transport up to 190,000 b/d when completed, which is expected in the first quarter of 2014.
Originating in Washington County, Pennsylvania, the first leg of the system would involve construction of approximately 595 miles of new pipeline extending to Cape Girardeau, Missouri, closely paralleling an existing Enterprise pipeline. At Cape Girardeau, Enterprise will reverse a 16-inch diameter pipeline and place it into ethane service.
"By utilizing an existing pipeline and following an existing right-of-way for the section to be constructed, ATEX Express offers a cost-effective and timely solution that also minimizes the project's environmental impact," Enterprise said in a statement.
The transportation rate will range between 14.5 to 15.5 cents/gal, according to the company.
At the southern terminus of the ATEX Express pipeline, Enterprise will construct a 55-mile, 16-inch diameter pipeline to provide shippers with access to the partnership's natural gas liquids storage complex at Mont Belvieu, Texas.
"The willingness of shippers to commit to a term of at least 15 years reflects the long-term potential of shale development in the Appalachian region and provides us with the assurance necessary to build the midstream infrastructure that will facilitate further development of this important domestic resource," said Michael A. Creel, president and CEO of Enterprise's general partner.
