Shell Pipeline Co. LP launched a binding open season for transportation commitments on its new Falcon Ethane Pipeline System, a 94-mile common carrier that will connect source points in southwestern Pennsylvania to West Virginia and Ohio.
“The new pipeline will enhance ethane supply while building new and reliable infrastructure in a strategic growth market,” said John Hollowell, executive vice president of the company, in a statement.
The pipeline will be located in a region that is home to about 70% of the North American polyethylene market and within a 700-mile radius of Pittsburgh. The company anticipates the proposed system will connect three major ethane source points within Pennsylvania and Ohio, in the rich gas portions of the Marcellus and Utica shale reservoirs, to a petrochemical plant in Monaca, Pa. Construction is scheduled to begin in late 2018.
Falcon’s initial pipeline capacity is expected to be approximately 107,000 bbl/d of ethane. If shipper demand exceeds the initial offered capacity, the capacity will be expanded sufficiently to accommodate committed volumes, plus at least 10% for spot shipments.
The binding open season began Oct. 17, 2016 and will continue until Nov.18.
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