Steubenville, OH in the Catbird Seat – Between Two Crackers

Several weeks ago MDN editor Jim Willis attended the 2019 Northeast Petrochemical Conference and Expo in Pittsburgh. A major reason for attending such events is to connect with others in the industry. On this trip, Jim had the pleasure of meeting and talking with Bryce Custer, business director for global commercial real estate company NAI’s Ohio River Corridor division. Bryce’s job is to find real estate for companies in places where maybe real estate isn’t (yet) for sale. Companies like manufacturers who want to locate near the Shell and (soon, hopefully) PTT ethane cracker facilities–looking to locate in the Ohio River Valley. Bryce helps them find suitable locations. Bryce recently spoke to the Steubenville Revitalization Group and had an interesting observation about Steubenville’s geography.
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We’ve found one more bit of evidence that Ohio officials believe, rather strongly, that PTT Global Chemical will move forward with building a multi-billion dollar ethane cracker in Belmont County. JobsOhio, a private non-profit with a board appointed by the Ohio governor, gets most of its operating revenue from taxes on liquor sales in Ohio. JobsOhio previously spent $17 million in 2016 to clean up the site where PTT says they may/maybe/might build a cracker plant (see
The Falcon ethane pipeline being built by Shell in western Pennsylvania and eastern Ohio is unique in many ways. Falcon is a 97-mile, two-legged pipeline system to carry ethane to the mighty Shell cracker plant now under construction in Beaver County, PA (near Pittsburgh). We spotted an article about the pipeline and its construction. According to a local conservation office in Beaver County, pipeline construction “hasn’t even affected us [wildlife] a bit,” thanks to careful planning by Shell. A pipeline everybody loves? Is that even possible?!
Last Thursday and Friday, MDN attended the Northeast Petrochemical Conference & Exhibition in Pittsburgh. There were a number of interesting stories coming from the event that we will chronicle this week. However, there was one bit of breaking news from the event: Bechtel Oil, Gas & Chemicals Senior Project Manager of Pennsylvania Chemicals, Paul Marsden, made official what we previously shared as a rumor–that Bechtel has been selected as the EPC (engineering, procurement and construction) contractor to build the PTT cracker plant complex, when and if a positive final investment decision is made. According to a number of sources, that decision will get made this year.
Ann Bristow, Professor Emeritus at Frostburg State University and resident of Garrett County, is once again trying to foment irrational fear of the fossil fuel industry. Bristow was one of the “experts” that kept fracking out of Garrett County (one of two Maryland counties with commercial shale deposits), harming its citizens economically. Now she’s trying to whip up opposition to a regional ethane storage hub that won’t even be located in Maryland.
Last week Shaledirectories.com and TopLine Analytics hosted the one-day Appalachian Storage Hub Conference in Canonsburg, PA. Charles Zelek, a senior economist with the U.S. Dept. of Energy’s Office of Fossil Energy was one of the speakers. According to our friends at Kallanish Energy who attended, Zelek “implored” the audience to establish an ethane storage hub in the Tri-State area. Like now, before it’s too late.
Every now and again we traffic in rumors here on MDN, but we do so rarely and only when we trust the source of the rumor. In mid-March we brought you juicy tidbits from a highly trusted source about the PTT Global Chemical ethane cracker project in Belmont County, OH, a rumor about why a final investment decision (FID) to proceed has been delayed (see
Bechtel, a huge multi-national engineering firm, is the company building the mighty Shell ethane cracker in Monaca, PA. Shell won’t divulge when they think the cracker will be up and running (still a year or more away), but in what we consider a very good sign that the cracker will be operating sooner rather than later, Shell has just awarded another huge multi-national engineering firm, AECOM, the contract to maintain all the machinery at the cracker plant once it’s built and running.
Seems like every few months there’s a meeting or conference somewhere in the Marcellus/Utica region that addresses the topic of ethane storage. Another such a meeting was held in Pittsburgh yesterday. The meeting was preparatory for the upcoming
Natural gas was front and center at the ninth annual Marcellus and Manufacturing Development Conference, an event of the West Virginia Manufacturers Association, held yesterday in Morgantown, WV. Among the speakers was Steve Winberg, U.S. Department of Energy assistant secretary for fossil energy. He mouthed strong support for the Appalachian Basin ethane “hub” saying the region can easily support up to five ethane crackers, and that could lead to $35 billion of investment and 100,000 jobs in the region.
Ohio Congressman Bill Johnson is “urging patience” with PTT Global Chemical and their long-overdue final investment decision (FID) to move forwarding with building what is now being called a $7-$10 billion ethane cracker complex in Dilles Bottom (Belmont County), OH.
Some major news coming from yesterday’s Utica Midstream conference held in North Canton, Ohio. A rep from Marathon Petroleum (which is based in Ohio) told conference attendees his company is contemplating building an underground NGL storage facility in Harrison County, OH–to store ethane, butane and propane.
Every now and again we traffic in rumors here on MDN, but we do so rarely and only when we trust the source of the rumor. We have such a rumor to share, from a source we trust implicitly. We’ve been carping for over a year that PTT Global Chemical has repeatedly violated our deep well of patience by hinting that a “final investment decision” (FID) is “coming soon” for their $7-$10 billion ethane cracker complex in Belmont County, OH (see
As we keep pointing out, PTT Global Chemical, the company that says they want to build a $6 billion ethane cracker plant complex in Belmont County, OH, keeps hinting that a “final investment decision” (FID) will come soon. Any day now. Just around the corner. They’ve been saying it for nearly two years.
PTT Global Chemical has made and broken so many promises about the timing of a decision to build a $6 (lately cited as $10) billion ethane cracker in Belmont County, we’ve lost track of the number broken deadlines. Don’t get us wrong. We still hope and believe the project will happen, but we’ve grown weary of the delays in an announcement. And we don’t even live in the region!