February 2014, Vol. 241 No. 2
In The News
Kinder Morgan, Targa Resources Form Texas JV
Kinder Morgan Energy Partners (KMP) LP and Targa Resources Partners LP have signed a letter of intent to form a joint venture to construct natural gas liquids (NGL) fractionation facilities at Mont Belvieu, TX, to provide services for producers in the Utica and Marcellus shale resource plays in Ohio, West Virginia and Pennsylvania.
In order to allow producers and shippers sufficient time to assess their Gulf Coast fractionation and pipeline needs, a binding open season for the Utica Marcellus Texas Pipeline (UMTP), a proposed joint venture between MarkWest Utica EMG LLC and KMP, will be extended until Feb. 28. The UMTP will involve the abandonment and conversion, subject to Federal Energy Regulatory Commission approval, of more than 1,000 miles of KMP’s existing Tennessee Gas Pipeline system, currently in natural gas service, from Mercer, PA, to Natchitoches, LA, and building 200 miles of pipeline from Natchitoches to Mont Belvieu.
The new fractionation facilities will be located adjacent to Targa’s existing facilities at Mont Belvieu and will provide fractionation services for customers of UMTP of up to 150,000 bpd, and potentially serve up to 400,000 bpd of maximum pipeline capacity.
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