Energy infrastructure company Williams and Boardwalk Pipeline Partners have signed a joint venture (JV) agreement to develop Bluegrass Pipeline in the US.
The pipeline will carry natural gas liquids (NGLs) from the Marcellus and Utica shale plays to the petrochemical and export complex on the US Gulf Coast.
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The new pipeline project will include the construction of a new NGL pipeline from producing areas in Ohio, West Virginia and Pennsylvania, and interconnect with Boardwalk’s Texas Gas Transmission system in Hardinsburg, Kentucky.
The pipeline will also be extended to Eunice in Louisiana, where a portion of Texas Gas will be converted from natural gas service to NGL service.
The joint venture firm will also construct a new large-scale fractionation plant and expand NGL storage facilities in Louisiana.
The company will also develop a new pipeline, which will connect these facilities to the converted Texas Gas line in the Eunice area.
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By GlobalDataIn addition, the JV company is planning to build a new export liquefied petroleum gas terminal and related facilities on the Gulf Coast, which will provide access to international markets.
Phase one of the proposed pipeline is expected to provide 200,000 barrels of mixed NGLs to producers with take-away capacity in Ohio, West Virginia and Pennsylvania.
Phase two of the project will increase the capacity to 400,000 barrels per day by pumping additional liquids, and deliver mixed NGLs to proposed new fractionation and storage facilities.
Boardwalk Pipeline Partners president and CEO Stan Horton said the JV with Williams will help to connect prolific Marcellus and Utica liquids production to the markets, where the products are in high demand.
"The Bluegrass Pipeline project provides an opportunity to leverage our liquids assets in the Lake Charles, Louisiana area and repurpose a portion of Texas Gas without impacting our firm service to existing natural gas customers," Horton added.
Image: Williams and Boardwalk Pipeline Partners have signed a joint venture agreement to develop Bluegrass Pipeline in the US. Photo: Courtesy of SeanMack.
