Press Esc to close

WorldOil

World Oil News Center



Williams and Boardwalk to form NGLs pipeline JV

HOUSTON -- Williams Cos. and Boardwalk Pipeline Partners unveiled plans to form a joint venture that would develop a pipeline project to transport natural gas liquids from the Marcellus and Utica shale plays to the petrochemical and export complex on the U.S. Gulf Coast and the petrochemical market in the Northeast U.S.

The proposed "Bluegrass Pipeline" design would provide producers with 200 Mbpd mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania.

It would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas.

"We are designing Bluegrass Pipeline to provide these two world-class resource plays with access to one of the largest and most dynamic petrochemical markets in the world," Williams Chief Executive Alan Armstrong said. "The current infrastructure challenge with natural gas liquids in the Northeast is slowing drilling and isolating liquids supplies from the robust markets in the Gulf that are poised to grow substantially over the next five years."

For its part, Boardwalk noted the project is consistent with its long-term growth strategy of diversifying within the midstream energy sector and leveraging newly acquired liquids infrastructure assets at Boardwalk Louisiana Midstream, which would provide a critical footprint for the downstream fractionation and storage portion of this project.

Williams and Boardwalk said they are also exploring development of a new export liquefied petroleum gas terminal and related facilities on the Gulf Coast to provide customers access to international markets.

The companies noted the proposed pipeline could be increased to 400 Mbpd a day to meet market demand.

By combining new construction with an existing pipeline, Williams and Boardwalk said they believe the Bluegrass Pipeline can be placed into service and begin serving customers sooner than other options. The companies expect to sanction the project this year and place the planned project into service in the second half of 2015.

In February, Williams--which gathers and transports natural gas, and owns most of its namesake master limited partnership, Williams Partners--said it had swung to a fourth-quarter profit despite impacts from weaker natural-gas liquids margins as the year-earlier loss stemmed from asset write-downs and other charges related to its former exploration and production business.

Meanwhile, Boardwalk Pipeline in February said its fourth-quarter earnings rose 26% as the oil-and-gas transporter recorded strong revenue growth across all its segments.

Dow Jones Newswires

03/06/2013

 

Bookmark and Share


WO DATA HUB

EngineeringTablesIcon-Large

Engineering Data Tables

World Oil's specialized upstream Engineering Data Tables featuring the Drill Bit Classifier, Tubing Tables and more. Get Total Access today.

WO SUPPLEMENTS

2013 Fracturing Technology

2013 Fracturing Technology

MEDIA CENTER

By Digital Publisher

Drill Bit Classifier World Oil published its renowned Drill Bit Classifier in September 2013. The Drill Bit Classifier is a comprehensive listing of major manufacturers' d...

ENERGY EVENTS