12 October 2011 00:16 [Source: ICIS news]
HOUSTON (ICIS)--Canada is more likely to first receive ethane from shale plays in the US northeast than the US Gulf, an industry analyst said on Tuesday.
Enterprise Products Partners announced on Tuesday the start of a binding open season for ethane shipping commitments on its proposed pipeline, stretching from the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio to the US Gulf coast. The pipeline would be designed to transport ethane.
However, Petral Worldwide analyst Dan Lippe noted that Canada’s NOVA Chemicals has already set up arrangements to receive ethane from the Marcellus shale to feed its cracker in Sarnia.
“Ethane will flow to Sarnia before it goes anywhere else – NOVA Chemical has signed definitive agreements for ethane with three gas producers in Marcellus,” Lippe said.
NOVA teamed up with Sunoco to use existing pipelines for shipping ethane to NOVA’s cracker in Sarnia from committed producers in the Marcellus shale region.
Marcellus producers Range Resources, Statoil and Caiman Energy have made Memorandums of Understanding to sell ethane to NOVA.
The binding season for customers to use Enterprise pipeline project to the US Gulf runs from 11 October through 10 November.
“Enterprise is an established midstream company and has all [of] the necessary infrastructure to receive and store ethane from the Marcellus, should gas producers want to support this project” Lippe said.
This is the second project to hold a binding season for transporting ethane to the US Gulf.
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