More Clarity on Status of Mountaineer NGL Storage Facility in OH

In May, MDN conveyed the news that it appears Mountaineer NGL Storage, which wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica), had, according to the story we read, begun construction (see Mountaineer NGL Storage Facility in OH Under Construction). Based on a later article, we stated that our older story was in error (see Mountaineer NGL Storage Facility in OH Not (Yet) Under Construction). In October 2016, Mountaineer drilled and completed a test well in the salt formation. But in April of this year, Mountaineer said construction had not yet begun due to problems with red tape (see Mountaineer NGL Storage in Monroe County, OH Caught in Red Tape). An interview with a company official said nobody has (as yet) signed on the dotted line to use the facility, and that is the holdup now. Which has been, more or less, confirmed at the recent Appalachian Storage Hub conference, held last week in Canonsburg, PA. After reading an account of Mountaineer’s comments at the event, we now believe we have a fuller, even more accurate picture. The situation is this: Yes, they need customers to sign up to use the facility (minimum of 1 million barrels of storage would get it going). In addition, Mountaineer still needs to build a 3.25 million barrel brine pond, used to pump out the stored NGLs. Mountaineer is still waiting for a clearance from the Ohio Dept. of Natural Resources to build the pond, likely to take a few more months. So they need customers, and they need more regulatory approvals…

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