Mountaineer NGL Wants to be THE Appalachian Storage Hub

When the topic of NGL (natural gas liquids) storage comes up with respect to the Marcellus/Utica region, there are two separate and distinct projects mentioned: A massive, $10 billion ethane/NGL storage hub with no specific location identified as yet (but West Virginia often named), and the much smaller Mountaineer NGL storage hub proposed for Monroe County, OH. Recently none other than the U.S. Dept. of Energy issued an NGL primer to call attention to the need for a large NGL storage hub (see DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage). The Mountaineer project was mentioned in the DOE report. We’ve written plenty about Mountaineer NGL, located just across the river (and border) from West Virginia (see our Mountaineer NGL Storage stories here). What do we know about the proposed Mountaineer NGL Storage project? The Colorado company behind the project plans to spend up to $500 million to build it; some 20 drillers have expressed interest in contracting with the facility to store ethane; and both the nearby PTT Global cracker plant project (if it gets built) and the under-construction Shell cracker plant are both interested in connections to the facility. In November, we learned there is a construction delay until mid-this year (see Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH). We are on record having previously said this: “Could the Mountaineer NGL Storage project end up being THE main NGL project for the entire region, being touted by so many? No. But it is an important project–one of the key pieces of the NGL storage puzzle that will serve our region.” It appears Mountaineer may not agree with our take. In an interview with the Pittsburgh Business Times, Mountaineer makes it clear they want to be THE NGL storage hub for the Marcellus/Utica region. Instead of building a huge $10B project from the start, Mountaineer’s strategy is to grow slow but steady–responding to market conditions along the way. Mountaineer says that’s how it was done in Texas, and that’s how they believe it can (and should) be done in our region…

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