Williams, Boardwalk form JV to transport NGLs from US shale plays

28 May 2013 23:59  [Source: ICIS news]

HOUSTON (ICIS)--Williams and Boardwalk Pipeline Partners are teaming up for a joint venture to build a pipeline to transport natural gas liquids (NGLs) from the Marcellus and Utica shale plays to petrochemical complexes on the US Gulf Coast and northeast, the companies announced on Tuesday.

Dubbed the “Bluegrass Pipeline”, phase one would transport 200,000 bbl/day of mixed NGLs from Ohio, West Virginia and Pennsylvania, the US-based companies said in a press release. Phase two would increase pipeline capacity to 400,000 bbl/day.

The planned pipeline would include building an NGL pipeline from the shale plays to an interconnect with Boardwalk’s Texas Gas Transmission system in Hardinsburg, Kentucky. From there on to Eunice, Louisiana, a portion of Texas Gas would be converted from natural gas service to NGL service, the companies said.

The joint venture includes the planned construction of a large-scale fractionation plant and expanded NGL storage facilities in Louisiana and a new pipeline connecting these facilities to the converted Texas Gas Transmission line in the Eunice area.

The project could be placed into service by late 2015, the companies said.

"This timely joint venture with Boardwalk would link two liquids-rich resource plays in the northeast US 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," said Alan Armstrong, president and CEO of Williams. "The large scale solution has many advantages including an early in service date, lower environmental impact, lower cost and lower permitting risk."

Williams and Boardwalk also said they are analysing the possibility of building a liquefied petroleum gas (LPG) export terminal and related facilities on the Gulf Coast.

By: Jeremy Pafford
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