Ethane

Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

Marcellus/Utica Ethane can Now Hitch a Ride to LA via Aegis Pipe
January 4, 2016January 4, 2016

Last week Enterprise Products Partners reported completing the remaining portion of the Aegis ethane pipeline that runs from Lake Charles, Louisiana to Napoleonville, Louisiana. Aegis is now online and flowing ethane. And that’s good for the Marcellus/Utica. Wait….what? Why is an ethane pipeline built in LA good for the northeast? Because that pipeline will almost certainly be flowing ethane from the Marcellus/Utica. Here’s the connection…
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Beaver County | Belmont County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Ohio | Pennsylvania | Processing Plants | PTT Global | Shell | West Virginia | Wood County

Will 2016 be the Year *Somebody* Commits to Building a Cracker?
December 28, 2015December 28, 2015

Will somebody, somewhere PLEASE build the northeast an ethane cracker plant? Pretty please? We noticed a couple of stories that indicate 2016 is THE year that at least one company will likely pull the trigger on an FID–a Final Investment Decision to build an ethane cracker. But which company is likely to do it? Shell? PTT Global? Odebrecht? Leaving Odebrecht’s Parkersburg, WV proposed cracker aside for the moment (a project where we barely detect a pulse), both the Shell plant, planned for Beaver County, PA, and the PTT Global plant, planned for Belmont County, OH, have seen impressive signs of activity in 2015. Which of those two will likely say “yes” in 2016?…
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Axiall | Energy Services | Ethane | Industrywide Issues | Processing Plants

Final Decision: Axiall Building Ethane Cracker in LA…NE Ethane?
December 23, 2015December 23, 2015

Two years ago Axiall Corporation, the former Georgia Gulf/PPG, announced a plan to build a $3 billion ethane cracker/petrochemical facility in Louisiana. The facility, as we noted at the time, will almost certainly use at least some ethane coming from the Marcellus/Utica region (see Axiall Announces New Cracker Plant for LA, Fed by NE Ethane). As we know only too well, making a “final investment decision” (FID) about whether or not to spend $3 billion of a company’s money (or more correctly go into debt and spend other people’s money), and take upward of 3-4 years to build a plant, is not something you just decide to do willy-nilly. It takes a looooooooooong time to get to that point. Shell announced a cracker for Pennsylvania back in 2012 and they still haven’t made an FID. It was certainly a good sign from Axiall when they announced a partnership with Lotte Chemical for their new Louisiana cracker project (see 4th World Class Marcellus/Utica Ethane Cracker…in Louisiana??). Lightening has struck! Last Friday Axiall and Lotte announced an FID has been reached and indeed they are moving forward. Horray! Of course it would be more exciting if that plant were located in PA, WV or OH rather than Lake Charles, LA (where they have enough crackers already). But we’ll take these victories when and where we can. The expected startup date is 2019…
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Ethane | Industrywide Issues | Pipelines | Processing Plants | Statewide WV | West Virginia

IOGAWV Rep Says Marcellus/Utica Can Support “8 or 9 Crackers”
December 21, 2015December 21, 2015

The president and CEO of Eagle Manufacturing in Wellsburg, WV is Joe Eddy. During a recent meeting in Oglebay Park, Eddy represnted the WV Indpendent Oil and Gas Association. He had some interesting things to say. Among them: the Marcellus/Utica region could right now support “eight or nine crackers.” He also spoke out against three ethane pipelines that transport northeast ethane to other regions…
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Economic Impact | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Poly(ethylene) Wants a Cracker: OH Study Predicts Ethane Tsunami
December 14, 2015December 14, 2015

A researcher and “Executive in Residence” from Cleveland State University, Andrew Thomas, writes about a new study produced by the University “to better understand the ramifications of huge quantities of natural gas and liquid ethane being produced in Ohio.” Unfortunately we were unable to track down a copy of the full study and its results, but we do have the summary as contributed by Thomas in writing for Crain’s Cleveland Business. And wow, what insights we gain! Thomas says the study he worked on concludes that even in this down market, Ohio’s production of natural gas liquids (NGLs), specifically ethane, is on a rocket ride to the moon. He says, “Ohio’s about to see an ethane tsunami.” He also says if all four ethane crackers that have been floated as possibilities for the region get built, that would only sop up one-third of the ethane supply projected to be produced in the Marcellus/Utica. Here’s the high-level but very exciting and insightful news coming from this study…
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Belmont County | Energy Services | Ethane | FirstEnergy | Industrywide Issues | Ohio | Processing Plants | PTT Global

FirstEnergy Working Like Crazy to Clean Up Future OH Cracker Site
December 8, 2015December 8, 2015

In June FirstEnergy Corp. kind-of, sort-of confirmed that their now-closed R.E. Burger power plant site in Belmont County, OH would be the location for the future PTT Global Chemical ethane cracker plant (see FirstEnergy Confirms Their Site is Future Home of OH Cracker). FirstEnergy has gone from being cagey and reticent to admit theirs is the site that will be used, to frenetic activity/can’t get it cleaned up fast enough. They are hauling out old coal power plant equipment and working to turn the brownfield site into a greenfield site within a year–to have it ready to sell to PTT sometime in 2016. Here’s what they’re currently doing at the site to get it ready…
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Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Taps Swiss Company INEOS for OH Cracker Plant Technology
November 24, 2015November 24, 2015

Yet another piece of the Belmont County, OH ethane cracker falls into place–further indicating the project is likely to get built. It was only April of this year that MDN brought you the announcement that partners PTT Global Chemical (based in Thailand) and Marubeni Corporation (financial company based in Japan) were teaming up to potentially build a new $5.7 billion ethane cracker/petrochemical complex in Belmont County (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Since that time, PTT hasn’t let any grass grow under its feet. Already PTT (and Marubeni) are spending $100 million with Bechtel Enterprises and Fluor Corporation to design the plant (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). PTT has also signed an option to buy the property where they plan to build the plant (see 300 Acres Next to FirstEnergy Site Part of Belmont Cracker Plan). All very good signs that this is indeed a serious project moving forward. And now, another piece of the puzzle falls into place. INEOS Technologies, a Swiss-based petrochemical technology company, announced they have been selected to provide a key piece of the technology for the new Belmont cracker plant…
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Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Odebrecht’s WV Ethane Cracker Plant May Not be Dead After All
November 16, 2015November 16, 2015

Wait a minute! We thought the proposed Odebrecht ethane cracker plant near Parkersburg in Wood County, WV was all but dead. Lifeless. In April the company said it was “re-evaluating plans” to build it (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). In June, Odebrecht’s Brazilian CEO was arrested, casting further doubt on the project (see Odebrecht CEO Arrested; What Does it Mean for WV Cracker Plant?). Since that time we’ve seen a bit of cheerleading and some empty platitudes from WV Gov. Earl Ray Tomblin who hasn’t given up on the project (see WV Gov Tomblin Continues to Cheerlead for Wood Co. Cracker Plant). But we didn’t detect a pulse. Both the Shell cracker (in PA) and PTT Global cracker (in OH) have had robust developments that indicate those plants are making serious progress. But nothing for the Odebrecht project all year long–that is, until now…
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Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

French Co. Gets Contract for Key Components in Belmont Cracker
October 30, 2015October 30, 2015

Another piece of the puzzle slides into place with respect to the $5.7 billion ethane cracker project in Belmont County, OH planned by Thailand-based PTT Chemical and financial partner Marubeni Corp. from Japan (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). The quickly got serious when PTT’s CEO Supattanapong Punmeechaow visited the proposed site last month to announce they are spending the first $100 million on engineering work for the cracker plant over the next 9-12 months with two companies–Bechtel Enterprises and Fluor Corporation (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). The project is truly taking on an international flavor. A third company has stepped forward to say they’ve now been contracted to design and build the furnaces and other key components of the cracker. That company is the Paris, France-based Technip. Below is their announcement with details about what, exactly, they will provide for the project…
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Beaver County | Belmont County | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell

Expert Tells Utica Conference NE Will See “3 or 4” Cracker Plants
October 14, 2015October 14, 2015

An expert speaking at the Utica Summit III yesterday in Stark, OH said he believes the Marcellus/Utica region will see three, possibly four, ethane crackers built. Tom Gellrich of consulting firm TopLine Analytics, a company that “closely follows ethane markets,” said he thinks the first ethane cracker to get built will be the Shell cracker plant in Beaver County, PA…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Paying $69M to Move Water Plant for Cracker Project
October 7, 2015October 7, 2015

Shell is currently spending an undisclosed amount of money (millions of dollars) to build a bridge to a site they now own where they may one day build a $2-$3 billion ethane cracker plant in Beaver County, PA (see Shell Begins Building Bridge to PA Cracker Plant Site). Shell is also reportedly spending $80 million to clean up the site (see Shell Paying $80M to Clean Up PA Site for Ethane Cracker Plant). In yet one more positive sign that the project will happen, Shell is spending $69 million to move a water intake site and build a new water treatment site for Center Township–because the current water intake is on the site Shell owns–and Shell needs extra capacity for water treatment. You don’t spend hundreds of millions of dollars to walk away from a project, in our humble opinion…
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Energy Services | Ethane | Industrywide Issues | MarkWest Energy

MarkWest Exec Says Ethane Storage Key Issue for NE Cracker Plants
October 1, 2015October 1, 2015

Ethane tank in Grangemouth, Scotland – click for larger version

At yesterday’s sessions of the West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park (Wheeling), WV, MarkWest Energy’s executive vice president and chief commercial officer Greg Floerke talked about natural gas liquids (NGLs)–specially ethane–and the need for a regional ethane cracker plant. Floerke said MarkWest currently processes around 75% of all NGLs in the Marcellus/Utica region and that his company alone could provide enough ethane for several cracker plants. However, for those considering the prospect of spending billions of dollars to build a cracker plant, Floerke says there is a key issue–storage. Cracker plants want to be assured there will be a steady supply and one way you get steady supplies is with storage…
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Appalachian Resins | Energy Services | Ethane | Industrywide Issues | Monroe County | Ohio | Processing Plants

AR “Baby” Cracker Plant in Monroe County, OH Put on Hold
September 28, 2015September 28, 2015

In February 2013 MDN brought you news about plans from Appalachian Resins (AR) to build a polyethelene (PE) manufacturing plant complete with a “baby” ethane cracker. The original plan was to build it in the Wheeling, WV area. However, a year later the location shifted across the border to Monroe County, OH. As late as April of this year AR was still committed to the project (see Ohio “Baby Cracker” Plant Still a Go – 2018 Startup Date). Turns out commitment is a fickle thing when it comes to cracker plants–either baby or fully grown. AR recently revealed they have put their “baby cracker” plant project on hold. The leaders of AR say with both Shell and the PTT Global projects heating up, they don’t believe there will be enough talent in the region to build their project. Interestingly, the CEO of AR says he firmly believes the PTT Global project (a company based in Thailand) will get built–but not for the reason you might expect (i.e., economics)…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Paying $80M to Clean Up PA Site for Ethane Cracker Plant
September 22, 2015September 22, 2015

Shell continues to work (and spend money) on a site in Beaver County, Pennsylvania that will one day hopefully be the home of an ethane cracker plant. The most recent positive sign that Shell will move forward with the project is that they are in the process of building a bridge over a highway for trucks to access the site as they work on site preparation and building (see Shell Begins Building Bridge to PA Cracker Plant Site). The newest evidence that Shell will move forward with the project is their plan to deal with leftover contamination at the site. The site is a former zinc smelter and there are high levels of very nasty stuff in the soil at the site, including lead, arsenic, cadmium and mercury. Shell plans to cover the site, locking in the nasty stuff–a project that will cost them $80 million and take two years to complete…
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Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Gov Tomblin Continues to Cheerlead for Wood Co. Cracker Plant
September 21, 2015September 21, 2015

The one ethane cracker plant project announced for the Marcellus/Utica region that once seemed the mostly likely to proceed now seems the least likely to move forward–the Brazilian-based Odebrecht project planned for Wood County, WV. The ASCENT (Appalachina Shale Cracker Enterprise) project seemed to have the most momentum in 2014 (see Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum). But then the price of oil crashed and clouds started to appear for the project. In April Odebrecht pushed the pause button on the project (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). Odebrecht itself has been caught up in scandal in Brazil and it’s CEO was arrested in June (see Odebrecht CEO Arrested; What Does it Mean for WV Cracker Plant?). Both the Shell cracker project in Pennsylvania, which once seemed unlikely, and a new ethane cracker project for Ohio, have both since made significant progress, making the Odebrecht project seem all the more unlikely. However, WV Gov. Earl Ray Tomblin is still cheerleading for his state’s cracker plant. He recently said, “We feel very strongly they’ll continue to build the cracker plant”…
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Beaver County | Belmont County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | PTT Global | Shell

Marcellus/Utica Ethane Will Flow to 6 Crackers Being Built in SW
September 15, 2015September 15, 2015

While two, possibly three, major ethane cracker plant projects are being considered for the Marcellus/Utica region, there are six ethane crackers currently being built in the Gulf Coast region. The kicker? Marcellus and Utica Shale ethane will feed some of, perhaps portions for all of, those six cracker plants. It’s a shame, really. We could be reaping the rewards of a massive influx of jobs and investment not only by building an ethane cracker, but with the satellite businesses that will locate around it. Instead, much of that investment and those jobs are slipping away to the Gulf via NGL pipelines…
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