Significant long-term binding shipper commitments secured to support
Open Season Launched to Finalize Project Scope
DALLAS--(BUSINESS WIRE)--Jun. 26, 2014--
Energy Transfer Partners, L.P. (NYSE: ETP) today announced that its
Board of Directors has approved building a pipeline to transport natural
gas from processing facilities located in the prolific Marcellus and
Utica Shale areas to numerous market regions in the United States and
Canada. In conjunction with this announcement, ETP is announcing it has
signed long-term agreements with multiple shippers and is launching a
binding Open Season.
The natural gas pipeline is currently sized to transport 2.2 billion
cubic feet per day, however, depending on additional shipper
commitments, the project likely will be expanded to transport up to 3.25
billion cubic feet per day. ETP has secured capacity commitments from
producers who hold significant acreage positions in the Utica and
Marcellus Shales and has been in negotiations with numerous other
shippers who have expressed a desire to contract for capacity in the
Open Season. The three largest shippers on the project are American
Energy – Utica, LLC (AEU), Antero Resources Corporation (NYSE:AR) and
Range Resources Corporation (NYSE:RRC). American Energy and Antero
Resources both have options to purchase non-operating equity interests
in the project.
The first approximately 400 miles of the project will enable the flow of
gas from processing plants and interconnections in Pennsylvania, West
Virginia and Ohio to points of interconnection with Energy Transfer’s
existing Panhandle Eastern Pipe Line (PEPL) and another Midwest pipeline
near Defiance, Ohio. Shippers in the ET Rover project also will be able
to transport to Trunkline Zone 1A, delivery points via the
interconnection with PEPL, to access existing and new industrial markets
and potential liquefaction export markets in the Gulf Coast.
Additionally, ETP expects to construct an approximately 195-mile segment
from the Defiance area through Michigan and ultimately to the Union Gas
Dawn Hub (Dawn) near Sarnia, Canada providing producers with access to
diverse markets and end-users in Michigan and Canada with access to
Marcellus and Utica supplies. Energy Transfer has received sufficient
commitments and Board Approval to build the pipeline to Defiance and
anticipates receiving sufficient volumes to justify building to Dawn.
ETP’s binding Open Season for shippers to secure capacity on the ETP
pipeline will begin tomorrow at 9:00 AM CDT. Pending the results of the
Open Season and all necessary regulatory approvals, Energy Transfer
plans to have initial service to the Midwest Hub located near Defiance,
Ohio and Gulf Coast markets by the fourth quarter of 2016, and the
remaining service to markets in Michigan and Canada by the second
quarter of 2017.
For commercial inquiries about the natural gas pipeline project, please
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership owning and operating one of the largest and most diversified
portfolios of energy assets in the United States. ETP currently owns and
operates approximately 35,000 miles of natural gas and natural gas
liquids pipelines. ETP owns 100% of Panhandle Eastern Pipe Line Company,
LP (the successor of Southern Union Company) and Sunoco, Inc., and a 70%
interest in Lone Star NGL LLC, a joint venture that owns and operates
natural gas liquids storage, fractionation and transportation assets.
ETP also owns the general partner, 100% of the incentive distribution
rights, and approximately 33.5 million common units in Sunoco Logistics
Partners L.P. (NYSE: SXL), which operates a geographically diverse
portfolio of crude oil and refined products pipelines, terminalling and
crude oil acquisition and marketing assets. ETP’s general partner is
owned by ETE. For more information, visit the Energy Transfer Partners,
L.P. web site at www.energytransfer.com.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master
limited partnership which owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer Partners, L.P.
(NYSE: ETP), approximately 30.8 million ETP common units, and
approximately 50.2 million ETP Class H Units, which track 50% of the
underlying economics of the general partner interest and IDRs of Sunoco
Logistics Partners L.P. (NYSE: SXL). ETE also owns the general partner
and 100% of the IDRs of Regency Energy Partners LP (NYSE: RGP) and
approximately 40.7 million RGP common units. The Energy Transfer family
of companies owns more than 61,000 miles of natural gas, natural gas
liquids, refined products, and crude oil pipelines. For more
information, visit the Energy Transfer Equity, L.P. web site at www.energytransfer.com.
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results are
discussed in the Partnership’s Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. The Partnership undertakes no obligation to update or revise
any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our
website at www.energytransfer.com.
Source: Energy Transfer Partners, L.P.
Energy Transfer Partners, L.P.
Vicki Granado, 214-599-8785