Bluegrass Pipeline on Indefinite Hold

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The developers of the Bluegrass Pipeline, which would transport natural gas liquids across 200 miles of Kentucky, have put their project on indefinite hold, citing a lack of customer interest.

The Kentucky Oil and Gas Association had publicly supported the pipeline as an investment in infrastructure to move energy through the state.  The natural gas liquids would be used to make plastics, adhesives, fuels and other products to be sold on both the domestic and international markets.

The pipeline encountered resistance from many Kentucky residents since its introduction last year, with at least 11 counties passing resolutions opposed to the planned pipeline or expressing concern about the environmental impacts.  Critics warned of possible explosions, leaks of toxic chemicals in natural gas liquids, and the potential for abuse of property-rights.

The developers, Williams Company and Boardwalk Pipeline Partners, said that their decision was not based on opposition to the project from within the state, but rather the lack of firm commitments from their customers.

The Bluegrass Pipeline had suffered a recent setback on March 25 through a ruling by Franklin Circuit Judge Phillip Shepherd, who ruled that the developers did not have the legal authority to condemn land to transport natural gas liquids across the commonwealth.

(Credit: Courier Journal)

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