NEW YORK, Oct 11 (Reuters) - Enterprise Products Partners L.P. on Tuesday launched an open commitment season for a proposed ethane pipeline running from the Marcellus and Utica shale deposits to Mont Belvieu, Texas.
The pipeline would ship ethane from shale deposits in Pennsylvania, West Virginia and Ohio to the Texas ethane hub, where it would have direct or indirect access to every ethylene plant in the United States, the company said in a statement.
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I would much rather see the ethane stay here where it is being produced ! This entire western Pa , eastern Ohio , and northern West Va. area has been economically depressed for far too long. Let Shell and whoever else wants build the cracker plants here at @ the source! IT'S TIME FOR US TO PROSPER !!!!!
Enterprise Products Partner's - Pipeline Project update:
"... Enterprise Products Partners LP, Houston, has received sufficient transportation commitments to support development of its 1,230-mile Appalachia to Texas pipeline (ATEX Express), delivering ethane production from the Marcellus-Utica shale of Pennsylvania, West Virginia, and Ohio to the US Gulf Coast. ATEX Express will transport up to 190,000 b/d from Appalachian production to EPP's storage and distribution in Texas.
Originating in Washington County, Pa., the system's first leg would involve construction of about 595 miles of new pipeline extending to Cape Girardeau, Mo., closely paralleling an existing Enterprise pipeline. At Cape Girardeau, Enterprise will reverse a 16-in. OD pipeline and place it into ethane service. At the southern end of the ATEX Express pipeline, Enterprise will build a 55-mile, 16-in. OD pipeline providing access to NGL storage at Mont Belvieu.
Enterprise is conducting surveys and negotiating right-of-way agreements and expects ATEX Express to begin commercial operations in first-quarter 2014.
US Gulf Coast petrochemical demand for price-advantaged ethane feedstock over crude oil-based derivatives is about 955,000 b/d and continues to increase, Enterprise said.
Chesapeake Energy Corp., Oklahoma City, signed a long-term contract as anchor shipper on ATEX Express in November 2011. The pipeline would have an initial capacity of 125,000 b/d but could be expanded through a combination of additional pumping horsepower and pipeline looping. Chesapeake committed to supply 75,000 b/d for the pipeline's 5-year ramp-up and can secure additional capacity in the project.
ATEX committed shipper transportation rate would range between 14.5 and 15.5¢/gal.
Mariner West, a 75,000-b/d pipeline project jointly developed by MarkWest Liberty Midstream & Resources LLC and Sunoco Logistics LP is to deliver Marcellus ethane to petrochemical markets in Sarnia by third-quarter 2013.
Range Resources Corp. executed an ethane sales contract for its Marcellus shale production with Nova Chemicals Corp. following a binding open season for Mariner West (OGJ, June 6, 2011, p. 88). Under the contract, initial deliveries of ethane are to begin in late 2013 with full delivery starting early 2014. The Mariner West project is to have an initial capacity of up to 50,000 b/d and can be scaled to support higher volumes as needed.
Sunoco Logistics will move the ethane through Mariner West from the Houston complex in southwest Pennsylvania to the international border near Marysville, Mich., for further delivery into Sarnia's petrochemical market.
MarkWest is also this year building pipelines between its Sherwood, Mobley, and Majorsville, W.Va., gas processing centers, all of which will feed into its Houston, Pa., processing and fractionation complex for potential shipment on Mariner West. The pipeline to Houston from Majorsville will deliver ethane produced via de-ethanization capacity being built in Majorsville.
MarkWest has similar projects under way linking Utica shale processing plants in Monroe and Harrison counties, Ohio, to its Houston, Pa., facilities. The Harrison site will also include fractionation.
MarkWest's pipeline and de-ethanization processing will also serve other ethane transportation projects, said the company, including Mariner East and Enterprise's ATEX Express. (See article on p. 88 for more details on the growth of gas processing and fractionation in response to shale development in the US.)
Mariner East is proposed to move ethane by pipeline to Philadelphia and from there via ship to either the US Gulf Coast or Europe. The combined Mariner projects would use primarily existing Sunoco pipeline, with an estimated 85 miles of newbuild pipe required. Mariner will have access to ethane storage near Sarnia and would construct new storage at Philadelphia and near Nederland, Tex. MarkWest says the capacity of Sunoco's existing 8-in. OD pipeline to Philadelphia could be increased as demand for Mariner East warrants. ..."