Is the Appalachian NGL Storage Hub Close to Reality?

A pair of recent stories shows that progress is being made with respect to building an ethane (NGL) storage hub somewhere in the Marcellus/Utica region. In fact, progress is being made on two such facilities. Appalachia Development Group is leading an effort to get a $10 billion NGL (primarily ethane) storage hub established in Appalachia–most likely in West Virginia (see WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub). Federal loan guarantees are in the works for that massive project and an engineering firm has been hired. Meanwhile, Mountaineer NGL Storage is planning a smaller facility in Monroe County, OH, located just across the river (and border) from West Virginia (see Final State Permits Expected Soon for OH Mountaineer NGL Storage). The Colorado company behind the Mountaineer NGL 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 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. But that may not be all! According to Katie Klaber, former president of the Marcellus Shale Coalition and principal of The Klaber Group, “We may not end up seeing just one storage hub, but instead it will be some interconnected groups of pipelines and storage.” In other words, we may see even more such facilities. It certainly appears that major progress is being made on the two named projects…

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