Ethane producers seek new outlets on Atex upset
OREANDA-NEWS. Ethane producers that connect to the long-haul Appalachia-to-Texas (Atex) pipeline in the Marcellus and Utica shale formations are searching for new takeaway options following yesterday's rupture that will leave portions of the line offline indefinitely.
Both Blue Racer Midstream's gas processing and fractionation plant in Marshall county, West Virginia, and MarkWest's plant near Houston, Pennsylvania, have lost their injection connectivity to Enterprise Products Partners' 125,000 b/d Atex pipeline following a rupture in the line early Monday morning.
While Blue Racer's connection to the Atex pipeline is shut in, its fractionator will continue operations.
"We are working with various residue pipelines to take our higher BTU gas," Blue Racer said.
Because the arrangements were being finalized, the company could not give any additional details on other possible connections or where those displaced volumes will end up.
The rupture occurred at a portion of the line in Brooke county, West Virginia. A 25-mile portion of the line from the point of the rupture up to its origination point in Washington county, Pennsylvania, is shut. Downstream of the rupture, the mainline connecting to Mont Belvieu, Texas, continues to be operational.
Spot ethane activity at Mont Belvieu was quiet despite the rupture in the ethane line. The market surfaced early, valued at 19.75?/USG, and rose to 20?/USG within the first half-hour of trade. Activity thinned out shortly after and the market traded lower, at 19.25?/USG.
Enterprise today said it is still working with regulators to investigate the cause of the rupture and to start repairs.
There is currently no timeline of when repairs will begin or when the line will be operational.
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