Williams Launches Major WV Expansion to Serve Southwestern Energy
Yesterday Williams announced a new, major deal with Southwestern Energy to expand its network of gathering pipelines and processing facilities in West Virginia, to serve Southwestern’s increasingly aggressive drilling program in the state. Williams will expand its its Oak Grove processing plant to handle extra wet gas that will flow into it from Southwestern’s 135,000-acre wet gas (i.e. NGL) drilling program in Marshall and Wetzel counties. Southwestern targets wet gas in the Marcellus and Upper Devonian in those two counties. The expansion will give the Oak Grove plant the capability to process an additional 1.8 billion cubic feet per day of wet gas. But wet gas isn’t the only focus. Williams is also expanding its pipeline network to an additional 71,500 dry gas acres, again in Marshall and Wetzel counties, targeting Southwestern’s dry gas Utica program. In the same announcement, almost as an afterthought (but for us is a really big deal), Williams announced it will connect its system to Columbia Pipeline’s (now TransCanada) Leach XPress and Mountaineer XPress pipelines, “to boost market access and diversify gas pricing opportunities.” Leach XPress, which is part of a project including Rayne XPress, will send gas all the way to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach XPress began construction earlier this year. Mountaineer XPress will send gas to Leach, Kentucky (as will Leach Xpress), and from there on to a variety of other markets in the Midwest and South–as well as the Gulf Coast (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Mountaineer Xpress received a favorable final environmental impact state from the Federal Energy Regulatory Commission in July of this year, but is still waiting on other permits before it begins construction. Here’s the news about Williams expanding in the Mountain State…
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While the Teamsters are holding a job fair today and tomorrow in Harrisburg to recruit for pipeline workers (see today’s lead story), next week Shell and the Community College of Beaver County (CCBC) will hold two back-to-back career expos on the other side of the state, in the Pittsburgh region, to “inform residents about all the current and emerging job opportunities” at Shell’s ethane cracker plant. On Thursday, Oct. 12, Shell will host the Pennsylvania Chemicals Military Petrochemical Day from 8am to 2pm–for former military service members. The event will be held in room 9103 of CCBC’s Learning Resources Center. Then at 6pm on the 12th, a free career expo will be held at the CCBC Dome–open to the public. Preregistration is not required, but is encouraged. This is your chance to meet with folks face-to-face who can help you land a job working on (or in) the mighty Shell ethane cracker. Don’t miss it!…
Last week the radicals at Big Green group PennFuture launched an advertising campaign that targets both U.S. Steel Corp. and the might Shell ethane cracker. The ad campaign, called “Your Toxic Neighbor” includes big ads on the sides of buses and on billboards in the Pittsburgh region. From the beginning of PA Gov. Tom Wolf’s administration, PennFuture radicals have populated his administration. Two PennFuture radicals previously in the Wolf cabinet are now gone: former Secretary of Policy, John Hanger (now gone, supposedly to spend more time with his wife and daughter in Massachusetts) and former Secretary of the Dept. of Environmental Protection, John Quigley (fired for conspiring with Big Green groups and getting caught doing it). The one remaining PennFuture radical still in the Wolf cabinet is Secretary of the Dept. of Conservation and Natural Resources (DCNR), Cindy Dunn. Time for Wolf to show her the door too (see 
On Monday, Mr. Supattanapong Punmeechaow, president and CEO of PTT Global Chemical (Thailand’s largest petrochemical company) signed a Memorandum of Understanding (MOU) with JobsOhio regarding PTT’s proposed ethane cracker plant. The MOU pledges to “enhance the well-being and quality of life” for those living in the area near the proposed cracker plant. PTT announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see 
One of the major themes at last week’s Shale Insight conference was NGLs (natural gas liquids), in particular ethane–and how the petrochemical industry that uses those NGLs will revolutionize the economic landscape of western PA, eastern OH, and northern WV–the tri-state area. One of the hottest of the hot topics is ethane storage. As we reported in early September, a research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub (see 
Shale Insight 2017 is now in the books. Another year, another great show. MDN editor Jim Willis is back in the office, chained to his computer. Next week Jim will share notes he took at the conference. For now, below are highlights from other news source from Day Two of the event. Unfortunately Jim had to leave before the closing keynote, given by former Trump White House Press Secretary Sean Spicer. But others were there to hear what Spicer had to say. Day Two began with a focus on the Shell ethane cracker. Members of the Shell team were on hand to describe how this critical project affects the region, and where it fits in the Marcellus/Utica landscape. One of the Shell team members said the skyline at the Beaver County site will change dramatically over the next 12 months as the buildings housing the various components are built. It was a fascinating talk with lots of information. Below is a roundup from Day Two…
Looking to land a job at Shell’s $6 billion ethane cracker plant when it’s up and running in a few years? A new program set up by Shell with the Community College of Beaver County (CCBC) may give you a leg up. CCBC offers a program in process technology that leads to an associate’s degree. As of this spring, 45 people were enrolled. CCBC expects 70 people to enroll this fall. CCBC’s process technology degree is just one part of their effort to train people for advanced manufacturing careers with Shell and other petrochemical companies. CCBC is partnering with businesses, nonprofits, other colleges to form the Tri-State Advanced Manufacturing Consortium which will help prepare students and retrain workers to meet the needs of energy and manufacturing companies throughout the region. More deets on getting trained for a future cracker job…
Antis in West Virginia who filed an appeal of a permit allowing US Methanol to build a plant in Institute, WV have been rejected by the WV Air Quality Board. Earlier this month US Methanol broke ground in Institute (Kanawha County), WV for its very first methanol production plant (see 
US Methanol broke ground yesterday in Institute (Kanawha County), WV for its very first methanol production plant. In August 2016 MDN was the first to share the news that US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see 
Yet another anti-shale argument falls. You read and hear plenty about a community’s tax base (i.e. property values) going down when/if shale drilling and associated infrastructure, like processing plants, come to town. That’s fake news. Here’s real news: In Doddridge County, WV, prior to the shale revolution visiting the county, the total assessed value for all properties in the county added up to $457.5 million. Seven years later, in 2017, with multiple wells drilled and massive new MarkWest natural gas processing plants built, total assessed value for all properties in Doddridge is now $1.4 BILLION. That’s a three-fold increase in seven years! Most of the increase comes from the oil and gas industry. Quite frankly, there’s no end in sight. Values will continue to rise in Doddridge…
We’re always on the lookout for news about a final investment decision by PTT Global Chemical to build a $5 billion ethane cracker in Belmont County, OH. Recently PTT spent $13.8 million to buy 168 acres at the proposed cracker plant site (see 
Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see 
E2 Energy Services, which operates numerous natural gas processing facilities in the Marcellus/Utica, has just recapitalized “through an equity commitment from Tailwater Capital.” MDN first heard of E2 back in October 2014 when EnLink Midstream transferred ownership (“dropped down”) its investment in E2 Appalachian Compression, LLC and E2 Energy Services, LLC from one EnLink corporate entity to another (see 
Ever hear the old proverb: “Success has many fathers, but failure is an orphan.” There are many reasons, many “fathers” for why the Marcellus/Utica region has become the highest producing natural gas region in the U.S. We have great shale rock. We have a lot of shale rock. We’re located close to major markets. We have a large and ready workforce. Increasingly, we have pipeline infrastructure to move the gas to new markets. All of those things contribute to the success of our region. But there’s one element that is critical, but often overlooked–gas processing and fractionation. Gas processing cleans up the hydrocarbons coming out of the ground–removing water and impurities, and separating methane (i.e. natural gas) from natural gas liquids (NGLs). Fractionation further separates NGLs into their components–ethane, propane, butane, pentane, etc. The U.S. Energy Information Administration (our favorite government agency) published an article yesterday looking at they critical role played by processing and fractionation in the Marcellus/Utica. They point out that when the shale revolution really began to take off in our area, circa 2010, we had roughly 1.1 billion cubic feet per day (Bcf/d) of gas processing capacity. In 2016, that number had zoomed up by a factor of nearly 10, to 10 Bcf/d of gas processing capacity. Without the ability the process the gas, it can’t be sold. One of the main “fathers” of success in the Marcellus/Utica, is processing…