Bluegrass pipeline project, US

2nd May 2014 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Bluegrass pipeline project, US

Name and Location
Bluegrass pipeline project, US.

Client
Williams and Boardwalk Pipeline Partners.

Project Description
The Bluegrass pipeline will connect supply from the Marcellus and Utica shale-gas areas in the US, north-east to growing petrochemicals and export markets in the US Gulf Coast. The pipeline will also connect natural-gas-liquids (NGLs) supply with the developing petrochemicals market in the US north-east. Phase 1 of the project will provide producers with 200 000 bbl/d of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania.

Phase 2 will increase capacity to 400 000 bbl/d to meet market demand, primarily by adding additional pumping capacity.

The pipeline will deliver mixed NGLs from these producing areas to new fractionation and storage facilities, providing connectivity to petrochemicals facilities and product pipelines along the coasts of Louisiana and Texas.

The Bluegrass pipeline includes the construction of a new NGLs pipeline from producing areas in Ohio, West Virginia and Pennsylvania to an interconnect with Boardwalk’s Texas Gas Transmission LLC system, in Hardinsburg, Kentucky.

From that point to Eunice, in Louisiana, a portion of Texas Gas will be converted from a natural gas service to an NGLs service.

Value
Not stated.

Duration
The project is expected to come into service late in 2015.

Latest Developments
Williams has suspended capital investments in the Bluegrass pipeline, primarily in response to an insufficient level of firm customer commitment.

The company continues to engage potential customers regarding the scale and timing of demand for services and the required firm contractual commitments that would support any future capital investments.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Williams investor contact John Porter, tel +1 918 573 0797.
Boardwalk Pipeline Partners investor relations and media contact Molly Ladd Whitaker, tel +1 866 913 2122.