By TESS STYNES
Enterprise Products said Tuesday it has received enough
commitments to move ahead with a planned 1,230-mile pipeline to
deliver growing ethane production from the Marcellus and Utica
shale regions to the US Gulf coast.
Increased natural gas drilling in areas such as the Marcellus
shale in the northeastern US is leading to a growing supply of
co-product ethane, a raw material for petrochemical production.
"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," said Michael
A. Creel, president and chief executive of Enterprise's general
partner, Enterprise Products Holdings LLC.
The pipeline will begin in Pennsylvania with 595 miles of new
pipeline extending to Missouri, where Enterprise plans to
reverse an existing pipeline and place it in ethane
At the southern end, Enterprise plans to construct a 55-mile
pipeline to provide shippers with access to its Mont Belvieu,
Texas, storage facility, providing indirect and direct access
to US ethylene plants.
In November, Chesapeake Energy - one of the most active
drillers in the Marcellus - announced an agreement to supply
Enterprise with ethane for the planned pipeline.
Enterprise has seen results soar in recent quarters, helped in
part by its $3.3 billion merger with Teppco Partners in late
2009, which created one of the largest pipeline companies in
The company in November reported third-quarter profit surged
on contributions from acquisitions and as revenue
Shares were down 12 cents at $46.26 in recent trading. The
stock is up 11% in the past year.
Dow Jones Newswires