Kinder Morgan Energy Partners, L.P, and MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (MarkWest) and The Energy and Minerals Group (EMG) announced the launch of a binding open season to solicit commitments for a proposed Y-grade pipeline project to transport natural gas liquids (NGLs) produced from the Utica and Marcellus shales to Mont Belvieu, Texas. The pipeline will involve converting over 1,000 miles of KMP’s 24- and 26-inch Tennessee Gas Pipeline system, currently in natural gas service, from Mercer, Pa., to Natchitoches, La., and building approximately 200 miles of new pipeline of similar diameter from Natchitoches to a proposed Kinder Morgan/MarkWest Utica EMG joint venture fractionation facility with a third party that has existing facilities at Mont Belvieu. Subject to shipper commitments, timely regulatory approvals and necessary capital improvements, the pipeline is targeted to be in service during the second quarter of 2016. The pipeline will have an initial design capacity of 150,000 barrels per day (bpd) and would be expandable to 400,000 bpd with the addition of pump stations.
“This project will provide consumers on the Gulf Coast with access to a new source of NGLs from the Utica and the Marcellus shale resource plays,” said Don Lindley, president of NGLs for Kinder Morgan Energy Partners. “Through Kinder Morgan and MarkWest Utica EMG’s existing pipeline footprint, this project is capable of accessing all of the processing facilities in the Northeast in a cost effective manner.”
“We are excited about the announced partnership with Kinder Morgan and the planned Y-grade pipeline solution from the Northeast,” stated Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “We believe this project will provide our producer customers additional optionality and value for their production out of the Northeast shales.”
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