Chesapeake signs as anchor shipper on EPP Marcellus-Utica ethane line

Chesapeake Energy Corp. has signed a long-term contract as anchor shipper on Enterprise Products Partners LP’s proposed long-haul ethane pipeline from the Marcellus and Utica shale regions in Pennsylvania, West Virginia, and Ohio to the US Gulf Coast. The roughly 1,230-mile pipeline would have an initial capacity of 125,000 b/d and could be quickly expanded through a combination of additional pumping horsepower and pipeline looping.

Chesapeake committed to supply 75,000 b/d for the pipeline’s 5-year ramp-up period and can secure additional capacity in the project. The company says it views this agreement as an important step toward obtaining premium transportation pricing for the volumes it will produce in the region.

The project will use a combination of new and existing systems (OGJ Online, Oct. 11, 2011). The binding open season for shippers to commit to the pipeline is open until Nov. 10. The pipeline’s committed shipper transportation rate would range 14.5-15.5¢/gal.

Through connections at EPP’s NGL complex in Mont Belvieu, Tex., ethane production from the Marcellus and Utica shales would have access to every ethylene plant in the US. Enterprise anticipates the pipeline beginning commercial operations as early as first-quarter 2014.

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

Southwestern makes $5.4 billion bet on Marcellus

12/12/2014 Southwestern Energy Co. is purchasing Appalachian assets from Chesapeake Energy Corp. in a deal that more than doubles its leasehold in the Marcell...

Stone drills successful Utica exploration well

12/10/2014 Stone Energy Corp., Lafayette, La., reported that its Pribble 6HU well in Wetzel County, W.Va., flowed from a 3,605-ft lateral at 30 MMcfd during t...

Outgoing Maryland governor moving ahead on fracing regulations

12/02/2014 Maryland Gov. Martin O’Malley plans to propose regulations that would allow hydraulic fracturing in western Maryland provided that natural gas comp...

BHI: Gains in Utica, Ohio headline latest US rig count

11/14/2014 The US drilling rig count was up 3 units to reach 1,928 rigs working during the week ended Nov. 14, with notable gains in Ohio and more specificall...

Bakken, deepwater Gulf of Mexico to boost Hess’s production

11/11/2014 Hess Corp. plans to increase its production growth rate forecast by 6-10%/year during 2013-18, assuming $90-100/bbl Brent, anchored by production i...

Sunoco Logistics to move ahead with Mariner East 2 NGL pipeline

11/07/2014 Sunoco Logistics Partners LP, Philadelphia, reported receiving sufficient binding commitments from shippers to move ahead with its Sunoco Pipeline ...

GCA: Falling oil price to have uneven effect on US unconventional plays

11/04/2014 Falling oil prices will have an uneven effect across US unconventional plays based on the qualities of reservoirs within any given play, Gaffney Cl...

ETP’s Rover gas line reaches full 3.25 bcfd subscribed capacity

10/31/2014 Energy Transfer Partners LP has fully subscribed its Rover pipeline to transport 3.25 bcfd of natural gas through 15- and 20-year fee-based contrac...

BHI: US rig count makes gains in Kansas, modest rise overall

10/31/2014

The US drilling rig count edged up 2 units to reach 1,929 rigs working during the week ended Oct. 31, Baker Hughes Inc. reported.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected