Kinder Morgan Inc. is looking for commitments from shippers to build a pipeline from the Marcellus-Utica region to the Gulf Coast in Texas. The company has launched a binding open season to solicit shipper commitments for the proposed Utica Marcellus Texas Pipeline (UMTP), which would transport liquids from the Utica and Marcellus producing basins to delivery points along the Texas Gulf Coast, including connectivity to a Kinder Morgan dock.
The proposed project would involve the abandonment and conversion of 964 miles of natural gas service on KMI’s existing Tennessee Gas Pipeline (TGP), the construction of approximately 200 miles of new pipeline from Louisiana to Texas, new storage in Ohio and 120 miles of new laterals to provide basin connectivity.
The approximately $4 billion UMTP project will be designed to transport propane, butanes, natural gasoline, Y-grade and condensate in batches along the system, with a maximum design capacity of 430,000 barrels per day (bpd). Subject to shipper commitments and timely regulatory approvals, the pipeline will be in service by the fourth quarter of 2018.
“We are pleased to offer producers the flexibility to batch purity products for transportation to the Gulf Coast,” said Don Lindley, president of natural gas liquids (NGL), products pipelines for Kinder Morgan. “Repurposing the existing TGP asset provides increased optionality, reliability and market connectivity to shippers for all products, and supports the increasing production growth in the basin.”
The binding open season began June 17 today and ends Sept. 15, 2015. More information is available online at kindermorgan.com/pages/projects/umtp.Tags: Kinder Morgan, Open Season, Utica Marcellus Texas Pipeline (UMTP)