Ohio region included in joint venture for proposed natural gas pipeline
The Highland County Press
The Appalachian region of Ohio, West Virginia and Pennsylvania will potentially be affected by a plan by energy companies Williams and Boardwalk to implement a "Bluegrass Pipeline" to transport Appalachian natural gases to the Gulf Coast, according to a statement released by the company.
"The proposed 'Bluegrass Pipeline' design would provide producers with 200,000 barrels per day of mixed NGLs (Natural Gas Liquids) take-away capacity in Ohio, West Virginia and Pennsylvania," the press release stated.
"The proposed pipeline could be increased to 400,000 barrels per day to meet market demand, primarily by adding additional liquids pumping capacity."
Among the ways Ohio will be affected by this proposed plan is the construction of "a new NGL pipeline from producing areas in West Virginia and Ohio to an interconnect with Boardwalk’s Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, Ky."
A portion of Texas Gas would then be converted from Hardinsburg to Eunice, La. from natural gas service to NGL service, according to the companies' press release.
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The Highland County Board of Commissioners have been notified of the project via a letter from Wendell Hunt.
Assuming the proposed plan is approved, Williams and Boardwalk report that this pipeline would begin in the second half of 2015.
"This will help producers in Ohio, Pennsylvania and West Virginia achieve an attractive value for their ethane and other liquids,” said Alan Armstrong, president and chief executive officer of Williams.
The plan is still in an early stage, as a press release by the companies stated that they have "executed a letter of intent to form [this] joint venture" and that many other factors must be considered.
"Sanctioning and completion of this project is subject to, among other conditions, negotiation and execution of definitive joint venture and related agreements; execution of customer contracts sufficient to support the project; and the parties’ receipt of all necessary approvals, including board approvals and regulatory approvals, such as antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act, approvals by the Federal Energy Regulatory Commission (FERC), among others. Before Texas Gas Transmission may begin converting the TGT Loop Line, it must receive abandonment authority from FERC.
Boardwalk plans to file the abandonment application with FERC by May 1, 2013 and the abandonment process is estimated to take between nine to 12 months," the press release stated.