Enterprise Products Partners L.P. has received sufficient transportation commitments to support development of its 1,230-mile Appalachia to Texas pipeline (ATEX Express) that will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the Gulf Coast.
Demand for price-advantaged ethane feedstock over crude oil-based derivatives within the Gulf Coast petrochemical market is 955,000 bpd and continues to increase.
ATEX Express will have capacity to transport up to 190,000 bpd from the Appalachian production areas to the partnership’s storage and distribution assets in Texas. The committed shipper transportation rate will range between 14.5 cents per gallon and 15.5 cents per gallon.
Originating in Washington County, PA, the first leg of the system would involve construction of 595 miles of pipeline extending to Cape Girardeau, MO, closely paralleling an existing Enterprise pipeline. At Cape Girardeau, Enterprise will reverse a 16-inch pipeline and place it into ethane service. Utilizing an existing pipeline and following an existing right-of-way for the section to be constructed will minimize environmental impact.
At the southern terminus of the ATEX Express pipeline, Enterprise will construct a 55-mile, 16-inch diameter to provide shippers access to the partnership’s natural gas liquids storage complex at Mont Belvieu, TX, giving them direct or indirect access to every ethylene plant in the nation.
ATEX Express is expected to begin commercial operations in early 2014.