Projects this month are targeting take-away solutions for the Marcellus, Utica and Eagle Ford shale production. Plans include new crackers, processing facilities and pipeline expansions, as the prosperity found from oil production in unconventional plays continues to increase.
To that end, Chevron Phillips Chemical Co. LP recently revealed plans to pursue a project to construct a world-scale ethane cracker and ethylene derivatives facilities in the U.S. Gulf Coast region. Chevron Phillips Chemical's existing Cedar Bayou facility in Baytown, Texas, is the planned location of the new ethylene unit. Chevron has executed agreements with The Shaw Group Inc. to design a 3.3-billion pounds per year ethane cracker utilizing proprietary Shaw technology.
Chevron's technologies would be utilized for the construction of two new polyethylene facilities, each with an annual capacity of 1.1 billion pounds. The new polyethylene units will be built at the Cedar Bayou facility or at a site nearby the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas.
Elsewhere, Spectra Energy Corp., Texas Eastern Transmission LP, American Electric Power and Chesapeake Energy Marketing Inc., recently announced the intention to advance the development of the Ohio Pipeline Energy Network project, a proposed expansion of the Texas Eastern pipeline system that will connect Ohio's Utica and Marcellus shale gas supplies with the fast-growing markets attached to the Texas Eastern system—in particular, natural gas-fired power generation.
The expansion project brings together the largest producer and leaseholder in the Utica shale play, the largest power generator in the region and one of the most prominent pipeline companies. The project will involve about 70 miles of new pipeline and create an additional 1 billion cubic feet per day of transportation capacity to serve local distribution companies, industrial users and gas-fired power generators in the Ohio market.
Meanwhile, Copano Energy LLC and Magellan Midstream Partners LP unveiled a new joint venture to deliver Eagle Ford shale condensate to Corpus Christi, Texas, including shipper commitments from producers in the rich gas window.
The joint venture, known as Double Eagle Pipeline LLC, will construct and own about 140 miles of new pipeline to connect an existing 50-mile pipeline segment, owned by Copano, to Karnes, Live Oak, McMullen and LaSalle counties of Texas, thus enabling delivery of condensate to Magellan's terminal in Corpus Christi. The initial capacity of the pipeline will be 100,000 barrels per day.
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