The approximately 1,980 km pipeline would have an initial capacity of 125,000 bbl/d of ethane and could be quickly expanded through a combination of additional pumping horsepower and pipeline looping.

Through connections at the partnership’s natural gas liquids (NGL) storage complex in Mont Belvieu, Texas, ethane production from the Marcellus and Utica shales would ultimately have direct or indirect access to every ethylene plant in the US. The pipeline could begin commercial operations in the first quarter of 2014.

Enterprise General Partner President and Chief Executive Officer Michael Creel said, “The addition of this new pipeline would provide producers in the quickly expanding Marcellus Shale play, as well as the emerging Utica Shale, with much-needed midstream infrastructure to facilitate production of NGL-rich natural gas and provide shippers with access to the highest value markets on the US Gulf Coast for their ethane.

“We have also built facilities to serve the petrochemical industry on the Gulf Coast as it continues to expand its demand for price-advantaged domestic ethane to displace more expensive imported crude oil derivatives.”

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Chesapeake Energy Corporation Senior Vice President – Marketing James Johnson added “As the most active driller and largest lease holder in the Marcellus and Utica Shale plays, Chesapeake has committed to 75,000 bbl/d over a five-year ramp-up period to anchor this critical infrastructure, and has the ability to secure additional capacity in the project.”

Enterprise Products Partners is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The company’s assets include approximately 80,467 km of onshore and offshore pipelines; 192 MMbbl of storage capacity for NGLs, refined products and crude oil; and 27 Bcf of natural gas storage capacity.

Chesapeake Energy Corporation is the second-largest producer of natural gas, a top 15 producer of oil and natural gas liquids and the most active driller of new wells in the US. Headquartered in Oklahoma City, the company's operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the US.