By SAABIRA CHAUDHURI
Williams Cos. and Boardwalk Pipeline Partners unveiled plans
to form a joint venture that would develop a pipeline project to transport natural gas
liquids from the Marcellus and Utica shale plays to the
petrochemical and export complex on the US Gulf Coast and the
petrochemical market in the
The proposed "Bluegrass Pipeline" design would provide
producers with 200,000 bpd of mixed NGLs take-away capacity in
Ohio, West Virginia and Pennsylvania.
It would deliver mixed NGLs from these producing areas to
proposed new fractionation and storage facilities, which would have
connectivity to petrochemical facilities and product pipelines
along the coasts of Louisiana and Texas.
"We are designing Bluegrass Pipeline to provide these two
world-class resource plays with access to one of the largest
and most dynamic petrochemical markets in the world,"
Williams CEO Alan Armstrong said.
"The current infrastructure challenge with natural gas liquids
in the Northeast is slowing drilling and isolating liquids
supplies from the robust markets in the Gulf that are poised to
grow substantially over the next five years."
For its part, Boardwalk noted the project is consistent with its
long-term growth strategy of diversifying within the midstream
energy sector and leveraging newly acquired liquids
infrastructure assets at Boardwalk Louisiana Midstream, which
would provide a critical footprint for the downstream
fractionation and storage portion of this project.
Williams and Boardwalk said they are also exploring
development of a new export liquefied petroleum gas terminal
and related facilities on the Gulf Coast to
provide customers access to international markets.
The companies noted the proposed pipeline could be increased
to 400,000 bpd to meet market demand.
By combining new construction with an existing
pipeline, Williams and Boardwalk said they believe the
Bluegrass Pipeline can be placed into service and begin serving
customers sooner than other options.
The companies expect to sanction the project this year and
place the planned project into service in the second
half of 2015.
Dow Jones Newswires