Enterprise To Build Marcellus/Utica Shale Ethane Pipeline

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Enterprise Products Partners L.P. has received sufficient transportation commitments to support development of its 1,230-mile Appalachia to Texas pipeline (ATEX Express) that will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast. Demand for price-advantaged ethane feedstock over crude oil-based derivatives within the Gulf Coast petrochemical market is approximately 955,000 bpd and continues to increase. ATEX Express will have the capacity to transport up to 190,000 bpd from the Appalachian production areas to the partnership’s storage and distribution assets in Texas. The committed shipper transportation rate will range between 14.5 cents per gallon and 15.5 cents per gallon.
  Originating in Washington County, PA, the first leg of the system would involve construction of approximately 595 miles of new pipeline extending to Cape Girardeau, MO, closely paralleling an existing Enterprise pipeline. At Cape Girardeau, Enterprise will reverse a 16-inch diameter pipeline and place it into ethane service. By utilizing an existing pipeline and following an existing right-of-way for the section to be constructed, ATEX Express offers a cost-effective and timely solution that also minimizes the project’s environmental impact.
  At the southern terminus of the ATEX Express pipeline, Enterprise will be constructing a 55-mile, 16-inch diameter pipeline to provide shippers with access to the partnership’s natural gas liquids storage complex at Mont Belvieu, TX, giving them direct or indirect access to every ethylene plant in the United States.
  Enterprise representatives are working with residents, landowners and community leaders along the proposed pipeline route, providing information about the project, conducting surveys and negotiating right-of-way agreements. ATEX Express is expected to begin commercial operations in the first quarter of 2014.