Enterprise to proceed with Appalachia-to-Texas pipeline
The Houston-based Enterprise Products Partners L.P. (Enterprise) is opening since September 1st a period to offer the opportunity for long term commitments with additional capacity for its Appalachia-to-Texas (ATEX Express) pipeline.
Operating about 50,000 miles of pipelines onshore and offshore, Enterprise manages among the largest storage capacities in USA with:
– 190 million barrels of crude oil, refined products and NGL
– 14 billion cf of natural gas
Enterprise provides midstream services covering:
– Crude oil and refined products storage terminals and transportation
– NGL fractionation, transportation, storage and export-import terminals
– Natural gas gathering, processing, transportation and storage
Dedicated to NGL, the purpose of the ATEX Express pipeline project is to transport the ethane produced in the Marcellus-Utica shale gas fields in Pennsylvania, West Virginia and Ohio to provide the US Gulf Coast in Houston with feedstock for the local petrochemicals industry.
Enterprise ATEX Express pipeline to connect Marcellus-Utica shale gas to US Gulf Coast Petrochemicals
The Appalachia-to-Texas pipeline should be 1,230 miles long to deliver Mont Belvieu, Texas.
At Seymour the ATEX Express pipeline will use an existing refined products pipeline working from the US Gulf Coast to Indiana to be converted to ethane and to be reversed to operate from north to south instead.
At the southern end in Beaumont, Texas, the ATEX Express pipeline will be extended by a new 55 mile pipeline to tie-in Enterprise’s NGL tank farm at Mont Belvieu, Texas.
Actually the Appalachia-to-Texas pipeline is designed to transport 190,000 b/d of NGL and earlier this year Enterprise had announced to have enough long term commitments to move on the construction phase.
But with the on going development of the Marcellus and Utica shale gas fields, the demand appears for additional capacity from now.
The actual Enterprise Products and Partners initiative is precisely to quantify this additional expansion of the project from now with these additional long term new commitments.
Enterprise offers these additional long term commitments for a period of 15 years.
In practice it means for the companies operating in the Marcellus and Utica shale gas region willing to export their NGL to or through Texas to sign bidding transportation contracts for a period of 15 years.
This actual binding period for new long term agreement opened on September 1st and will close on September 27th, 5 pm.
Among the NGL, ethane is primarily used in the petrochemicals industry as a feedstock for ethylene production, one of the basic building blocks for a wide range of plastics and other chemical products
Enterprise is expecting to connect all the sections of the ATEX Express pipeline and complete the construction for commercial operations by 2014.
With the Appalachia-to-Texas (ATEX Express) pipeline, Enterprise Products Partners consolidates its Market Leadership in the US midstream business by controlling the NGL feedstock supply to the numerous petrochemical projects to come on the US Gulf Coast in beginning with ExxonMobil Ethane Cracker project in Baytown, Texas.