In response to growing production of light crudes and NGLs, Enterprise Product Partners (EPD) is proposing a diluent-quality natural gasoline pipeline from Mont Belvieu to delivery points in and around Chicago.
The pipeline is only proposed at this time and an open season where companies can commit to capacity will last until April 18, 2013. If enough commitments are made, the pipeline will go forward. Even if it doesn’t, a market for natural gasoline is needed as production from plays like the Eagle Ford booms.
The pipeline could connect with both the Southern Lights and Cochin pipelines in the Midwest.
Read more about the open season at enterpriseproducts.com
There isn’t a standard definition for natural gasoline, but consider it something between natural gas condensate and oil. Natural gasoline has a typical API gravity of 80 degrees or almost double WTI crude oil at 42 degrees. The name is a little deceiving in that you can’t pump natural gasoline straight into your car. The octane content isn’t high enough for modern vehicles. It can be mixed with ethanol and used as a motor fuel or it can be used as a diluent in refining processes.
P.S. Watch for pictures from beautiful Joshua Creek Ranch in our rig count article tomorrow.