Open Season for New Marcellus/Utica LPG Rail & Export Terminal

Forget the pipelines. Artemis Liquids plans to build an export terminal along the shore of the Delaware River in New Jersey to export LPG (liquefied petroleum gas, or propane) to both domestic and international markets. The new export facility, which will be located directly across the river from the Philadelphia International Airport, is aimed at providing Marcellus and Utica drillers with an alternative to shipping their LPG all the way to the Gulf Coast. New Jersey (that is, the Philadelphia area) is a whole lot closer than the Gulf–meaning it’s a whole lot cheaper to ship to it. But what’s that? How on earth will drillers get their LPG to the Philly area without using pipelines like the Mariner East? By using railroads! Artemis Liquids has launched a non-binding “open season” (same concept as used in reserving capacity in pipelines) to gauge interest in the proposed LPG export terminal in Paulsboro, NJ, and in the necessary railroad capacity to get the LPG to the terminal. According to the open season documents, Artemis plans to offer capacity of 50,000 to 75,000 barrels per day, transported to the terminal via unit trains of 80 to 100 cars…

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