Enterprise says it has enough support for pipeline
Wednesday, January 4, 2012
HOUSTON (AP) — Enterprise Products Partners LP said Tuesday that it has enough support from shippers to build an energy pipeline between Pennsylvania and Texas.
Enterprise said it is negotiating right-of-way agreements and expects to begin operating the pipeline in the first quarter of 2014.
The 1,230-mile pipeline will link oil and natural gas fields in the Marcellus and Utica shale regions of Pennsylvania, West Virginia and Ohio with ethylene plants on the Gulf Coast.
The pipeline will handle up to 190,000 barrels per day. Shippers who commit to use the pipeline will pay between 14.5 cents and 15.5 cents per gallon, the company said.
Enterprise said shippers have committed to at least 15 years, indicating the long-term potential of energy development in shale formations of Appalachia.
The company said the project would create about 4,000 jobs during and after construction.
The first leg will run 595 miles from Washington County, Pa., to Cape Girardeau, Mo. From there, the company will use existing pipeline to connect with its natural gas liquids storage complex at Mont Belvieu, Texas.
Enterprise Products Partners shares rose 29 cents to close at $46.67.