Houston-based Buckeye Partners LP and Calgary-based NOVA Chemicals Corp. have agreed to explore the potential for a mixed natural gas liquids (NGL) pipeline from the Marcellus Shale in Pennsylvania to the refining and petrochemical complex in the Sarnia-Lambton area of Ontario, Canada.

The partners’ Union Pipeline Project, which is subject to final agreements and regulatory approvals, would ship mixed NGLs, principally for use as petrochemical feedstock, the companies said Wednesday.

The Union Pipeline would diversify refining and petrochemical feedstock supply for NOVA Chemicals and other potential users in the area and provide producers in the Marcellus Shale with takeaway capacity for their NGLs to the closest demand center, the companies said.

Initial service would be from Pittsburgh to the NOVA Chemicals Corunna olefins cracker near Sarnia, a market that has historically had limited NGL feedstock flexibility. Due to the proximity of Sarnia to the Btu-rich natural gas production area of the Marcellus Shale, NOVA Chemicals would be able to secure long-term competitive petrochemical feedstock supply via the Union Pipeline, the companies said.

Buckeye would develop, construct, own and operate the pipeline and would conduct an open season to solicit customer interest. Buckeye currently owns approximately 5,400 miles of refined products pipelines, with a presence in the northeastern and midwestern United States.

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