More competitive maneuvering by Bluegrass, Williams-Boardwalk against KMP/MWE
Williams And Boardwalk Sign Joint Venture Agreements For Proposed LPG Export Terminal
-- Proposed Moss Lake LPG Terminal Would Provide Marcellus and Utica Producers with Access to International Markets
-- Combined with Related Moss Lake Fractionation and Bluegrass Pipeline Joint Ventures, Would Offer Additional Downstream Market for NGLs Produced in Prolific Marcellus and Utica
..."Williams and Boardwalk today announced they have executed joint venture agreements to continue developing a liquefied petroleum gas (LPG) export facility in the Lake Charles, La. area. The proposed Moss Lake LPG Terminal would be located on the Calcasieu River and serve tanker ships transporting LPG to Asian, Latin American and European markets...."Sanctioning and completion of this project, including the Bluegrass Pipeline, Moss Lake Fractionation project and Moss Lake LPG, is subject to, among other conditions, execution of customer contracts sufficient to support the project and the parties' receipt of all necessary approvals, including board and regulatory approvals. In addition, each of the parties has the right, under certain circumstances, to withdraw from the project or from portions of the project, in which case the project may be terminated, only portions of the project may be completed, or the parties respective ownership interests in the project may change. Williams and Boardwalk cannot give assurances that this project will be completed, in whole or in part. However, if all conditions are satisfied and the parties elect to construct the facilities described above, the project could be placed into service in late 2015."
epd now adds competition to bluegrass LPG export plans. appears from the outside looking in bluegrass plans being squeezed from both sides; processing, frac and transport by KMP/MWE and from marketing/LPG now by epd
"HOUSTON--(BUSINESS WIRE)--Oct. 2, 2013-- Enterprise Products Partners L.P. today announced the construction of a new liquefied petroleum gas (LPG) export terminal on the Gulf Coast. The facility will have the capability of handling up to VLGC (very large gas carriers) class ships. The initial loading rate for export grade propane or butane service is expected to be approximately 11,000 barrels per hour, which would equate to approximately 6 million to 6.5 million barrels per month. Following the completion of the site evaluation at potential locations in Louisiana and Texas, this new LPG marine terminal is expected to be in service in the fourth quarter of 2015. Upon completion of the new terminal, and the recently announced expansion of the partnership’s existing terminal on the Houston Ship Channel, Enterprise will have aggregate capacity to load approximately 15 million to 16 million barrels per month of low-ethane propane and/or butane at its LPG marine terminals. ..."
Absolutely marvelous! EPD 's existing Mont Belvieu,TX, export terminal is being expanded to 108million barrels/year. It is already exporting 96 million barrels/year. And when you look at total USA exports of propane, EPD's export market share is like 70%...No way, Jose, is EPD going to go down without a fight on this action. Also, think of EPD's ATEX line coming from MWE's facilities in PA and OH to TX. EPD needs MWE as a friend. So, I'm thinking that EPD is signaling KMP/MWE that, "Hey,guys, if you are real serious about building a fractionation area in either TX or LA to be fed by your JV pipeline why don't you let EPD at least handle your export action?" I had wondered who KMP/MWE would work with on exports. Targa, MMP,and EPD were all candidates in my mind...