Kentucky Natural Gas Pipeline (Williams Partners) Delayed Until 2016

PennEnergy is reporting:

The construction of a planned natural gas pipeline in Kentucky has been delayed until 2016, The Associated Press reported. Alan Armstrong, president and chief executive officer of Williams Partners L.P., announced the decision in the company's 2013 financial report. The natural gas processing and transportation firm said the Bluegrass Pipeline project was pushed back to mid- to late-2016 in order to accommodate producer needs.

"The new timeframe is more consistent with evolving market conditions," a statement by the company said.

Once completed by Williams Co. and Houston-based Boardwalk Pipeline Partners, the pipeline will transport natural gas from northern to central Kentucky through 500 miles of pipeline.

The delayed construction of the Bluegrass Pipeline project is expected to lower Williams Co.'s capital expenditures by $1.4 billion over the next two years, Kentucky newspaper The State Journal reported.