Enterprise Products Partners L.P. and Chesapeake Energy Corp. have entered into a long-term contract in which Chesapeake will anchor Enterprise’s proposed long-haul ethane pipeline from the Marcellus and Utica shale regions in Pennsylvania, West Virginia and Ohio to the Gulf Coast.
The 1,230-mile pipeline would have an initial capacity of 125,000 barrels per day of ethane and could be quickly expanded through a combination of additional pumping horsepower and pipeline looping. The committed shipper transportation rate would range between 14.5 cents per gallon and 15.5 cents per gallon.
Through connections at the partnership’s natural gas liquids storage complex in Mont Belvieu ethane production from the Marcellus and Utica shales would have direct or indirect access to every ethylene plant in the U.S. The pipeline could begin commercial operations in early 2014.