Proposed natural gas pipeline moving along

From   The Observer
A Texas pipeline company says it is moving ahead with a planned natural gas pipeline project that will extend to the Sarnia market. Buckeye Partners LP has announced that a recent bid to gauge potential customer support for the project was overwhelmingly positive. In a news release the company states the project has received “favourable responses from potential customers to transport natural gas liquids (NGLs) produced in the Marcellus Shale Basin in Pennsylvania, United States to the market in Sarnia …”

Buckeye and NOVA Chemicals have signed a memorandum of understanding to evaluate and develop the mixed natural gas liquids pipeline from the Marcellus Basin in Pennsylvania to Corunna. The Marcellus Basin is one of the largest unconventional natrual gas deposits in the world. The company conducted its previously announced non-binding open season for the Union Pipeline last month to better define the potential demand for the proposed pipeline. The expressions of interest received by Buckeye support continued development of engineering designs for the Union Pipeline, the news release states.

The project will consist of either a 12-inch or 16-inch pipeline to the Detroit area, then continue north to the NOVA facility. Natural gas liquids carried in the pipeline would be used principally as petrochemical feedstock. It is believed that the pipeline will allow NOVA to secure long-term competitive petrochemical feedstock supply. The Union Pipeline Project is still subject to final agreements and regulatory approvals.

Buckeye would develop, build, own and operate the pipeline, and it’s expected to seek out other potential customers in Sarnia- Lambton. Local officials say the pipeline bodes well for the future viability of the NOVA facility, as well as the local petrochemical industry and industrial base as a whole.

Buckeye has announced it will hold another binding open season to gauge additional customer support for the project in mid-2010.

Observer Article ID# 2533895

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