Kinder Morgan Drops Its Utica Marcellus Gas Pipeline Project

Kinder Morgan said in a financial report that it has decided to cancel its Utica Marcellus Texas Pipeline project as it shifts focus to its existing Tennessee Gas Pipeline, which transports natural gas from Gulf Coast in Louisiana to the northeast.

The UMTP was supposed to transport natural gas liquids from the Utica and Marcellus shale regions to the Gulf Coast in Texas. Kinder Morgan filed with the FERC in 2015 to abandon the TGP project in favor of the UMTP, which would have had a design capacity of 430,000 barrels daily.

The TGP will instead have the flow reversed by the company as it looks for producer commitments for the route between Appalachia and the Gulf Coast.

The most recent abandonment of a project comes after Kinder Morgan abandoned another, more prominent, project earlier this year. The Trans Mountain oil pipeline in Ottawa was sold to the federal government after it became clear to Kinder Morgan that the same government could not guarantee that the project would go through.

Oil Price