Last week Enbridge announced plans to hold an open season in Q2 2010 for a proposed natural gas liquids (NGLs) pipeline that will move NGLs from the Marcellus Shale to processing plants in Chicago. The company joins other midstream operators in an effort to abate the current gas movement constraints that are present in the play. In February El Paso announced a 20-year term agreement with Chesapeake and StatOil for 100 percent of the capacity of its Northeast Upgrade Project. According to El Paso’s Feb 16th press release, “The project will provide 636,000 dekatherms per day of incremental firm transportation capacity from TGP’s 300 Line in Pennsylvania to an interconnect in New Jersey to serve growing markets in the Northeast.” An anticipated in-service date is November 2013. Also in February, Buckeye Partners announced a memorandum of understanding with NOVA Chemical Corp. regarding the Union Pipeline Project, a proposed NGL pipeline from the Marcellus to Ontario, Canada. Then earlier this month Buckeye announced a non-binding open season for the pipeline project. Rex Energy also reported, back in December, a JV with Stonehenge Energy Resources to build a high pressure gathering system and cryogenic gas processing plant in the play. This is just a hand full of the most recent projects that have pop up surrounding the Marcellus but if the activity lives up to the expectation in the play then producers will need as many midstream resources as possible.
To learn more visit the Marcellus Midstream Operators folder in the DI Unconventional Updates.
Anne Leonard
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