Three Projects To Follow In The Utica

Motley Fool is reporting:

Since wet gas is so important to the Utica's future, there are three major projects that Utica E&P companies will be following very closely. Enterprise Products Partners' ATEX pipeline, Enbridge's reversal and expansion of the Southern Lights pipeline, and Marathon Petroleum's $300 million plan to add 60,000 bpd of condensate refining capacity to two of its refineries in the Ohio valley.

The ATEX pipeline will be an NGL pipeline from the Utica/Marcellus to the Gulf Coast, where a majority of the United States' chemical refining capacity is located. The company just started open season where producers request space. Enbridge is planning to reverse the flow of the Alberta Clipper pipeline to go from the Midwest to Northern Alberta, where Utica condensate can be used as a blending component for Canadian heavy oils. For condensate to be shipped via pipeline, though, it needs to be stabilized. That's a fancy way of saying that it needs to be refined to reduce wear and tear on pipelines. It will take more wellhead investments for E&P companies, but with condensate trading at a $14 premium to WTI in Canada, it will be money well spent. 

And then this very, very interesting observation:

Whenever there has been a bottleneck in the supply of natural gas and NGLs, Enterprise Products Partners seems to be the one swooping in to take advantage of the situation. The ATEX pipeline is just one example of a long list of projects that will make Enterprise Products Partners one of the clear winners in the US energy boom. 

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