New Condensate Pipeline Proposed from Ohio to Western Canada

Here’s a new one for the Marcellus/Utica region: Unity Pipeline Company (a joint venture between Harvest Pipeline, which is Hilcorp, Somerset Gas Transmission, and Crossroads Pipeline, which is NiSource) has just launched an open season (a time for drillers to sign up) for a condensate pipeline that will stretch from the Marcellus/Utica in Ohio across the state into Indiana, Michigan, and all the way to western Canada. Condensate, sometimes called natural gasoline, is a hydrocarbon produced from “raw natural gas” when the raw gas temperature is dropped to a certain point. Condensate in the northeast is mainly found in the wet gas areas of eastern Ohio, southwestern Pennsylvania and the northern panhandle of West Virginia.

Condensate is used to dilute (mix with) crude oil so the oil can more easily be pumped through pipelines. There’s plenty of condensate available in the Marcellus/Utica, and plenty of need in western Canada where they pump a lot of oil. It makes sense to get all that condensate from point A to point B–and that’s what the proposed Unity Pipeline aims to do. Here is the announcement from Unity about their plan to build a 380-mile “diluent” pipeline, a project they hope to have up and running by the middle of 2015…

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