Utica Marcellus Texas Pipeline

The recently (re)announced Kinder Morgan Utica Marcellus Texas Pipeline (UMTP) is that company’s second iteration of a natural gas liquids (NGL) pipeline from Ohio to the Texas Gulf Coast. If built – the project would facilitate delivery of mixed NGLs (y-grade) and purity NGL products from the Utica to the Gulf Coast - where the liquids could be further processed and/or exported. Those purity products could include both plant and lease condensates. But as we discuss today - the project might currently be more attractive to NGL shippers anxious to get better prices for stranded northeast production than it is to condensate producers.

Growing volumes of natural gas liquids (NGLs) produced in the Marcellus and Utica need to find a market – inside or outside the region.  Getting them to outside markets involves transportation by pipeline, rail, truck or barge. Local demand is either from traditional “legacy” customers that consume propane, butane and natural gasoline or from new ethane-consuming projects such as proposed ethylene crackers. What’s already been done to address the demand side of the NGL equation, and what’s being planned?  Today, we conclude our series on NGL infrastructure in the Upper Ohio River Valley with a look at where all those NGLs will be heading.