2 Ethane Pipelines May Cause Marcellus/Utica Production to Jump

Is production in the Marcellus and Utica Shale about to increase–dramatically? It may, and not because of a flurry of new wells coming online. Production may soon increase because of two new ethane pipelines due to go online in the next few months–the Mariner West pipeline to Sarnia, Canada, and the ATEX pipeline to the Gulf Coast. When those pipelines become fully operational, drillers that had been scaling back production because of no markets for their ethane will likely turn the valves wide open and let it flow.

An excellent bit of analysis about the impact of these two new pipelines from Platts…

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