Enterprise, Chesapeake partner for ethane pipeline to US Gulf

02 November 2011 14:34  [Source: ICIS news]

HOUSTON (ICIS)--Natural gas producer Chesapeake Energy has agreed to anchor Enterprise Products Partner's proposed ethane pipeline from the northeast US to the US Gulf region, Enterprise said on Tuesday.

The pipeline would transfer ethane from the Marcellus and Utica Shale regions.

The 1,230-mile (1,968 km) pipeline will have an initial capacity of 125,000 bbl/day of ethane, with the ability to expand through additional pumping horsepower and pipeline looping, Enterprise said.

The pipeline should be operational by early 2014. The companies did not disclose the cost of the project.

“The committed shipper transportation rate would range between 14.5 cents/gallon and 15.5 cents/gallon,” Enterprise said.

“Through connections at the partnership's natural gas liquids [NGL] storage complex in Mont Belvieu, Texas, ethane production from the Marcellus and Utica shales would ultimately have direct or indirect access to every ethylene plant in the US,” the company added.

By: Bobbie Clark
+1 713 525 2653

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