The expansion of Appalachia-to-Texas pipeline, known as ATEX was announced by Enterprise Products Partners in a statement released on Monday morning. The 1,200-mile pipeline moves ethane from the Marcellus Shale and Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise's natural gas liquids storage complex just east of Houston in Mont Belvieu.
“The success of the open season reflects the demand for additional, reliable ethane takeaway capacity from the Appalachian region of the country,” Enterprise Senior Vice President Michael C. "Tug" Hanley said in a statement. “Our customers value flow assurance and reliability. The expansion of ATEX will facilitate growing production from the Marcellus/Utica Basin and will provide access to attractive markets on the Gulf Coast through Enterprise’s integrated midstream network.”
The decision came after the completion of a 30-day open season for producers to book capacity on the expansion project. The pipeline can currently move 145,000 barrels of ethane per day but the expansion project will boost that to 190,000 barrels per day.
Estimated construction costs have not been disclosed. Through improvements and modifications to existing infrastructure, the extra capacity will be available by 2022.