Investment in Bluegrass Pipeline Suspended
Williams has suspended capital investments in the Bluegrass Pipeline, a proposed natural gas liquids project, primarily in response to an insufficient level of firm customer commitments. The company continues to engage in discussions with potential customers regarding the scale and timing of demand for services and the required firm contractual commitments that would support any future capital investments.
According to multiple reports, Williams’ joint-venture partner Boardwalk Pipeline Partners LP CEO Stanley Horton said, “The project is not dead.”
The Bluegrass Pipeline is designed to connect natural gas liquids produced in the Marcellus and Utica shale areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast. The project’s backers say the pipeline represents a strong long-term solution in the marketplace.
Though both companies have stopped funding the project, the joint venture “is still in place and we continue to have discussions with customers,” Horton said during an April 28 conference call with analysts.
Williams, meanwhile, announced it plans to focus on its “large, diverse portfolio of attractive risk-return growth opportunities.” In a statement announcing the suspension of funding for the Bluegrass Pipeline, the company said it will pursue projects that “garner solid market support, strengthen its cash-flow growth and deliver advantaged connections between large supply areas and growing demand centers.”
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