Williams Bluegrass 6 10

Williams (Tulsa) and Boardwalk Pipeline Partners LP (Houston) have formed a joint venture to continue the development of the Bluegrass Pipeline, a project that would transport NGLs from the Marcellus and Utica shale plays to the petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast U.S.

Phase 1 of the proposed pipeline would provide producers with 200,000 bbld of mixed NGLs take-away capacity in Ohio, West Virginia, and Pennsylvania. Phase 2 would increase capacity to 400,000 bbld to meet market demand, primarily by adding additional liquids pumping capacity. The pipeline would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas.

The proposed Bluegrass Pipeline would also include constructing a new NGL pipeline from producing areas in Ohio, West Virginia, and Pennsylvania to an interconnect with Boardwalk’s Texas Gas Transmission system in Hardinsburg, Ky. From that point to Eunice, La., a portion of Texas Gas would be converted from natural gas service to NGL service. The joint venture would also include constructing a new, large scale fractionation plant and expanding NGL storage facilities in Louisiana and constructing a new pipeline connecting those facilities to the converted Texas Gas line in Eunice. Williams and Boardwalk are also exploring development of a new LPG export terminal and related facilities on the Gulf Coast to provide customers access to international markets.

By combining new construction with an existing pipeline, Williams and Boardwalk project that the Bluegrass Pipeline could be placed into service sooner than other options. The joint venture partners are engaged in comprehensive project development, including design, cost estimating, economic and risk analysis, customer contracting, permitting, and other legal and regulatory approvals and right-of-way acquisition. Williams and Boardwalk expect that the project could be in service in late 2015, assuming all conditions are met.