Kinder Morgan Launches Marcellus Open Season

June 2010 Vol. 237 No. 6

Kinder Morgan Energy Partners launched a 30-day non-binding open season June 14 to further gauge shipper interest for its Marcellus Lateral Project.

The project would enable the company to offer a new service for moving natural gas liquids from the Marcellus Shale Basin to fractionation plants and petrochemical facilities near Sarnia, Ontario.

The NGLs would be transported via approximately 230 miles of new pipeline and KMP’s existing Cochin pipeline system. Subject to regulatory approvals and necessary capital investments, Marcellus NGL shipments could begin as soon as mid-2012. Given appropriate levels of shipper support, Kinder Morgan could move over 150,000 bpd at a rate as low as nine cents per gallon.

“We have developed our proposal based on discussions with Marcellus producers and gas processors and believe that Kinder Morgan offers the quickest and most efficient solution for the delivery of NGLs to the premium Ontario market,” said Don Lindley, vice president of business development for KMP’s Products Pipeline group. “We also anticipate, at some point in time, reversing a section of Cochin to offer service to Chicago area refiners, fractionation plants and petrochemical facilities.”

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