Thursday, November 17, 2011

Chesapeake, Enterprise line to ship ethane from Northeast to Gulf Coast

HOUSTON, Texas - Chesapeake Energy Corp. said on Nov. 2 that it will anchor Enterprise Products Partners LP's proposed ethane pipeline from northeastern states to the Gulf Coast.

The companies did not disclose financial details of their long-term contract.

The pipeline would have an initial capacity to carry 125,000 barrels per day (b/d) and could be expanded, the companies said.

Shippers who commit to use the pipeline would pay between 14.5 cents and 15.5 cents per gallon.

The companies said the pipeline would deliver ethane produced in the Marcellus and Utica shale formations of Pennsylvania, West Virginia and Ohio about 1,230 miles to their storage complex for natural gas liquids in Mont Belvieu, Texas.

The pipeline could begin operating in early 2014, they said.

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