The Enterprise Products Pipeline Project
Source: Enterprise Products Partners L.P.; www.enterpriseproducts.com
- The Plan is Announced – On October 11, 2011, Enterprise Products Partners L.P. (NYSE: EPD) announced its commitment to plans for a proposed pipeline designed to transport ethane from the Marcellus and Utica shale regions in Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast.
- The Pipeline – The approximately 1,230-mile pipeline will have an initial capacity of 125,000 barrels per day of ethane and could be quickly expanded, (through a combination of additional pumping horsepower and pipeline looping), to meet increased shipper demand. The pipeline will deliver ethane to Enterprise’s natural gas liquids storage complex at Mont Belvieu, Texas. Through connections at the partnership’s natural gas liquids (“NGLs”) storage complex in Mont Belvieu, Texas, ethane production from the Marcellus and Utica shales will ultimately have direct and indirect access to every ethylene plant in the U.S. The pipeline could begin commercial operations in the first quarter of 2014.
- Q: What is Ethane? A: Ethane is a chemical compound with the chemical formula C2H6. At standard temperature and pressure, ethane is a colorless, odorless, flammable gas. It is isolated on an industrial scale from natural gasand as a byproduct of petroleum refining. The chief use of ethane is as a petrochemical feedstock forethylene production (Ethylene, (C2H4), is a gaseous organic compound that is widely used in industry)Sources: New World Encyclopedia, Wikipedia.
- The Route of the Pipeline – The project will utilize a combination of new and existing infrastructure. The northern portion of the proposed system involves construction of a pipeline that will originate in Washington County, Pennsylvania and extend west, then southwest, following existing pipeline corridors in order to minimize the footprint of the project. At Cape Girardeau, Missouri the pipeline will interconnect with Enterprise’s existing 16 in. diameter TE Products Pipeline, which will be reversed to accommodate southbound delivery of ethane to the U.S. Gulf Coast. At the terminus of the existing Enterprise TE Products Pipeline in Beaumont, Texas, the partnership will construct a 55-mile pipeline to the Mont Belvieu, Texas facility.
- Enterprise Products Partners L.P. – Enterprise is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals. Enterprise’s assets include approx. 50,000 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity.
- Q: Why Build the Pipeline? A: “The addition of this new pipeline (will) provide producers in the quickly expanding Marcellus Shale play, as well as the emerging Utica Shale, with much-needed midstream infrastructure to facilitate production of natural gas liquid (“NGL”)-rich natural gas and provide shippers with access to the highest value markets on the U.S. Gulf Coast for their ethane,” said Michael A. Creel, President and CEO of Enterprise’s general partner.“By providing access to the Gulf Cost petrochemical market, our ethane pipeline offers timely, cost-effective and expandable solution for meeting the country’s long-term needs from both an energy supply and demand perspective.” said A.J. “Jim” Teague, Executive Vice President and COO of Enterprise’s general partner.
- Recent News: On November 2, 2011, Enterprise Products Partners L.P. and Chesapeake Energy Corporation (NYSE: CHK) announced they have entered into a long-term contract whereby Chesapeake will anchor Enterprise’s proposed long-haul ethane pipeline from the Marcellus and Utica shale regions in Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast.