Energy company seeks producers for pipeline

Staff report

YOUNGSTOWN

A Houston-based energy infrastructure company is seeking customers for a proposed pipeline that would connect Ohio’s Utica shale play to the Gulf Coast near Texas.

Kinder Morgan Inc. launched its “binding open season” for commitments from shippers this week up until Sept. 15 for the $4 billion Utica Marcellus Texas pipeline project, which would transport liquids, produced from the Utica and the Marcellus producing basins, to delivery points along the gulf.

“We are pleased to offer producers the flexibility to batch purity products for transportation to the Gulf Coast,” Don Lindley, president of natural-gas liquids and products pipelines for Kinder Morgan, said in a statement.

The proposed project would involve the abandonment and conversion of 964 miles of natural-gas service on Kinder Morgan’s Tennessee Gas pipeline, and the construction of about 200 miles of new pipeline from Louisiana to Texas, new storage in Ohio and 120 miles of new laterals – segments that branch out from the main pipeline – to provide basin connectivity.

The pipeline will be designed to transport propane, butanes, natural gasoline, Y-grade and condensate in batches along the system, with a maximum capacity of 430,000 barrels per day.

The company expects the pipeline to be in service by the fourth quarter of 2018 based on commitments and regulatory approvals.

Kinder Morgan is the largest midstream and third-largest energy company in North America with a total value of about $130 billion.

Prospective shippers may contact Mike Sims, director of NGL business development for Kinder Morgan, at 713-420-4731.