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Ohio Utica Shale

Open seasons begins Oct. 29 for Bluegrass Pipeline

By Bob Downing Published: October 25, 2013

From Williams and Boardwalk Pipeline Partners on Thursday:

TULSA, Okla. & HOUSTON--()--Bluegrass Pipeline LLC, a joint venture between Williams (NYSE:WMB) and Boardwalk Pipeline Partners, LP (NYSE: BWP) (Boardwalk), today announced that it will be commencing a binding Open Season to determine industry commitments to natural gas liquids (NGLs) transportation capacity from the Marcellus and Utica shale plays to the petrochemical and export complex on the U.S. Gulf Coast. The Open Season will begin on Oct. 29, 2013 at 8 a.m. CDT and conclude on Dec. 16, 2013 at 5 p.m. CST.

“We have been in discussion with many Utica and Marcellus Shale producers during the past year and we look forward to additional customer commitments before the end of this year.”

To request a confidentiality agreement and Open Season package or ask questions about the Bluegrass Pipeline, Moss Lake Fractionation or Moss Lake LPG Terminal projects, contact Joe Edgeller with Williams at (918) 573-9917 or Joe.Edgeller@williams.com or Pat Giroir with Boardwalk at (713) 479-8061 or Patrick.Giroir@bwpmlp.com.

Phase one of Bluegrass Pipeline is being designed to provide customers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania. Phase two would increase capacity to 400,000 barrels per day to meet market demand, primarily by adding additional liquids pumping capacity. The pipeline would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities that would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas. In addition to these domestic markets, the fractionation and storage facilities are expected to have connectivity to a proposed new liquefied petroleum gas (LPG) export terminal that, based on current market conditions, would offer producers an attractive option for exporting propane and butane, which represent approximately 30 percent of the average NGL barrel.

“We have seen significant interest from the producer community regarding the value that the Bluegrass Pipeline can offer the market,” said Jim Scheel, senior vice president of corporate strategic development at Williams. “We have been in discussion with many Utica and Marcellus Shale producers during the past year and we look forward to additional customer commitments before the end of this year.”

“We believe our project offers a number of well-defined market options, both domestic and international, that offer attractive netbacks to the Utica and Marcellus producers,” said John Haynes, senior vice president and chief commercial officer for Boardwalk Pipeline Partners. “We are encouraged by our meetings with potential customers and are pleased to launch this Open Season.”

The Bluegrass Pipeline project is comprised of three segments:

1. Construction of a new NGL pipeline from numerous natural gas processing plants in producing areas in Ohio, West Virginia and Pennsylvania to an interconnect with Boardwalk's Texas Gas Transmission, LLC system near Hardinsburg, Ky.

2. Conversion of a portion of existing pipeline on Texas Gas Transmission from natural gas service to NGL service from Hardinsburg to Eunice, La.

3. Construction of a new NGL pipeline from Eunice, La. to a proposed large-scale fractionation plant and expanding natural gas liquids storage facilities in the Lake Charles, La. area.

The proposed fractionation plant and storage facilities are also a joint venture project between Williams and Boardwalk that have collectively been named Moss Lake Fractionation. Williams and Boardwalk also recently announced a joint venture for the development of a new LPG export terminal and related facilities near Lake Charles, La. on the Gulf Coast, named Moss Lake LPG Terminal, to provide customers access to international markets. The combination of the Bluegrass Pipeline, Moss Lake Fractionation and Moss Lake LPG Terminal projects offers producers a comprehensive and flexible market solution for the total barrel of NGLs.

By combining new construction with an existing pipeline, Williams and Boardwalk believe that the Bluegrass Pipeline should be placed into service and begin serving customers sooner than other options. Williams and Boardwalk are engaged in comprehensive project development planning including permitting, public consultation and right-of-way acquisition. On May 29, Boardwalk filed with FERC the Abandonment Application for the portion of Texas Gas Transmission that would be converted to NGL service, and the abandonment process is estimated to be complete in the second quarter of 2014. Williams and Boardwalk are targeting to place the project into service in late 2015, assuming the parties determine to complete the project and all necessary conditions are met.

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ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.