Environment
9:52 am
Mon April 28, 2014

Company Suspends Capital Investment in Bluegrass Pipeline

A partner in the controversial proposed Bluegrass Pipeline has suspended investment in the project.

Proposed route of the Bluegrass Pipeline.
Credit Williams

The proposed project that would meander through Kentucky to deliver natural gas liquids from drilling operations in the Northeast to the Gulf of Mexico faced intense opposition among environmental groups and landowners. Last month, a circuit judge ruled that the project's developers don't have eminent domain to build the pipeline. 

Williams, one of the partners seeking to build the Bluegrass Pipeline, said in a statement Monday that it was suspending capital investment in the project " primarily in response to an insufficient level of firm customer commitments." Williams added:

The company 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.

The Bluegrass Pipeline's development was slowed at least a year because of fewer than expected commitments from Williams' customers. It was initially supposed to be finished in late 2015.

We'll provide more information later, including reaction.