El Paso Midstream/Spectra Energy To Develop Ethane Pipeline

December 2010 Vol. 237 No. 12

El Paso Midstream Group Inc. has executed a Memorandum of Understanding (MOU) to jointly develop the proposed Marcellus Ethane Pipeline System (MEPS) project. Terms call for El Paso Midstream and Spectra Energy to each own a 50% interest and jointly operate MEPS.

The MEPS project, previously announced by El Paso, would be designed to transport up to 60,000 bpd of ethane from fractionation plants in the Marcellus Shale production region to interconnect points with third-party ethane pipelines and storage facilities in the Gulf Coast area. With the joint effort, MEPS will use both existing rights-of-way and infrastructure of Spectra Energy’s Texas Eastern pipeline system in Pennsylvania and Ohio, as well as portions of El Paso’s Tennessee Gas Pipeline system from Ohio to the Gulf Coast.

The MEPS project will primarily use existing facilities, rights-of-way and utility corridors, which will minimize impact to the environment and landowners and provide substantial cost efficiencies and improved project timing. Construction will include 200 miles of pipeline and compression facilities as well as vaporization and liquefaction facilities.

Targeted in-service for the project is late 2013.

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