Williams cuts off capital investments in Bluegrass Pipeline

Williams has suspended capital investments in the Bluegrass Pipeline, a proposed natural gas liquids project, primarily in response to an insufficient level of firm customer commitments, the company announced.

The project, in which Williams is a joint-venture partner with Boardwalk Pipeline Partners, is designed to connect natural gas liquids produced in the Marcellus and Utica areas of the Northeast with domestic and export markets on the Gulf Coast.

Phase one was to provide producers in Ohio, West Virginia and Pennsylvania with 200,000 barrels per day takeaway capacity of mixed natural gas liquids. Phase two was to increase capacity to 400,000 barrels per day.

The company says it continues to engage in discussions with potential customers regarding the scale and timing of demand for services and the required firm contractual commitments that would support any future capital investments.