KMP and MarkWest launch open season for new US pipeline project

Kinder Morgan Energy Partners (KMP) and MarkWest Utica EMG have launched a binding open season for a proposed Y-grade pipeline project across the US.

The project will supply natural gas liquids (NGLs) produced from the Utica and Marcellus shales to Mont Belvieu in Texas.

The project will convert around 1,000 miles of KMP’s 24in and 26in Tennessee Gas Pipeline system from Mercer in Pennsylvania to Natchitoches in Louisiana, which are currently in natural gas service.

The partnership will also construct around 200 miles of new pipeline of similar diameter from Natchitoches to a proposed Kinder Morgan and MarkWest Utica EMG joint venture fractionation facility.

The pipeline will be designed to have an initial capacity of 150,000 barrels per day (bpd), and plans to expand to 400,000bpd with the addition of new pump stations.

Kinder Morgan Energy Partners NGLs president Don Lindley said that the project will offer consumers on the Gulf Coast access to a new source of NGLs from the Utica and the Marcellus shale resource plays.

"Through Kinder Morgan and MarkWest Utica EMG’s existing pipeline footprint, this project is capable of accessing all of the processing facilities in the Northeast in a cost-effective manner," Lindley added.

The pipeline is expected to be complete in the second quarter of 2016.

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Image: KMP and MarkWest to build new Y-grade pipeline project. Photo: Courtesy of puttsk/ FreeDigitalPhotos.net.