Energy Transfer Partners’ Board of Directors has approved building a pipeline to transport natural gas from processing facilities located in the Marcellus and Utica Shale areas to numerous market regions in the United States and Canada. ETP is also announcing it has signed long-term agreements with multiple shippers and is launching a binding Open Season.
The natural gas pipeline is currently sized to transport 2.2 billion cubic feet per day, however, depending on additional shipper commitments, the project likely will be expanded to transport up to 3.25 billion cubic feet per day.
ETP has secured capacity commitments from producers who hold significant acreage positions in the Utica and Marcellus Shales and has been in negotiations with numerous other shippers who have expressed a desire to contract for capacity in the Open Season. The three largest shippers on the project are:
- American Energy – Utica,
- Antero Resources Corporation
- Range Resources Corporation.
American Energy and Antero Resources both have options to purchase non-operating equity interests in the project.
The first approximately 400 miles of the project will enable the flow of gas from processing plants and interconnections in Pennsylvania, West Virginia and Ohio to points of interconnection with Energy Transfer’s existing Panhandle Eastern Pipe Line (PEPL) and another Midwest pipeline near Defiance, Ohio.
Shippers in the ET Rover project also will be able to transport to Trunkline Zone 1A, delivery points via the interconnection with PEPL, to access existing and new industrial markets and potential liquefaction export markets in the Gulf Coast.
Additionally, ETP expects to construct an approximately 195-mile segment from the Defiance area through Michigan and ultimately to the Union Gas Dawn Hub (Dawn) near Sarnia, Canada providing producers with access to diverse markets and end-users in Michigan and Canada with access to Marcellus and Utica supplies. Energy Transfer has received sufficient commitments and Board Approval to build the pipeline to Defiance and anticipates receiving sufficient volumes to justify building to Dawn.
ETP’s binding Open Season for shippers to secure capacity on the ETP pipeline will begin tomorrow at 9:00 AM CDT. Pending the results of the Open Season and all necessary regulatory approvals, Energy Transfer plans to have initial service to the Midwest Hub located near Defiance, Ohio and Gulf Coast markets by the fourth quarter of 2016, and the remaining service to markets in Michigan and Canada by the second quarter of 2017.
For commercial inquiries about the natural gas pipeline project, please contact: Beth Hickey, email@example.com and Terry Reilly firstname.lastname@example.org
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