Williams and Boardwalk Pipeline Partners, LP have a joint venture agreement to continue development of the Bluegrass Pipeline, a project that would transport natural gas liquids (NGL) from the Marcellus and Utica Shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast.
Phase one would provide producers with 200,000 bpd of mixed NGLs takeaway capacity in Ohio, West Virginia and Pennsylvania. Phase two would increase capacity to 400,000 bpd to meet market demand, primarily by adding liquids pumping capacity.
Bluegrass would include a new NGL pipeline from producers in Ohio, West Virginia and Pennsylvania to an interconnect with Boardwalk’s Texas Gas Transmission system in Hardinsburg, KY. From there to Eunice, LA a portion of Texas Gas would be converted from natural gas to NGL service.
The joint venture would construct a large-scale fractionation plant and expand NGL storage facilities in Louisiana and construct a pipeline connecting these facilities to the converted Texas Gas line in the Eunice area. Williams and Boardwalk are also exploring development of an export liquefied petroleum gas terminal and related facilities on the Gulf Coast.
By combining new construction with an existing pipeline, Williams and Boardwalk believe Bluegrass could be placed into service and begin serving customers by late 2015.