Processing Plants

Butler County | Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants

ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA
June 9, 2015June 9, 2015

An important new project in the Marcellus/Utica was announced by Energy Transfer Partners (ETP) yesterday. The project, dubbed the Revolution Project, includes a new 100-mile gathering pipeline system in Butler County, PA along with a new cryogenic gas processing plant to be constructed “in western Pennsylvania.” The processing plant will be called the Revolution Plant. A pipeline (called the Revolution Pipeline) will be constructed to connect the Revolution Plant to Sunoco Logistics’ Mariner East NGL pipeline to handle NGLs coming from the plant. Another pipeline will be built to connect the plant to ETP’s Rover pipeline to handle natural gas coming from the plant. Also part of the Revolution Project will be a new fractionation facility to be built at the Marcus Hook refinery in the Philadelphia area. Total price tag for the whole shebang: $1.5 billion…
Read More “ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA”
Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY
June 9, 2015June 9, 2015

This one kind of slipped by our radar. Marathon Petroleum, the nation’s fourth largest refiner (headquartered in Findlay, OH), has just brought online a new $170 million condensate splitter at its refinery complex south of Catlettsburg, Kentucky. The purpose of the new splitter, which took two years to build, is to process sweet crude oil being produced in the Utica Shale of Ohio, Pennsylvania and West Virginia. And how, you may ask, is all that Utica crude getting to the facility? By barge, along the Ohio River…
Read More “Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrialization | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Sets Expectations for What Happens if PA Cracker is Built
June 4, 2015June 4, 2015

In yet another signal that Shell is very serious about building a $3 billion ethane cracker plant northwest of Pittsburgh, the company recently held public meetings in Beaver County, PA, where the plant would be built, to tell members of the local community what they can expect to hear, see, and smell during and after construction–if the plant gets built. Shell wants to be right up front about what happens when an industrial plant like the one they’re building comes into existence. We find that a “good neighbor” kind of thing to do. Look, there will be some inconveniences for a time when this thing gets built. Construction activity at the site will happen 24/7 for a number of years (yes, years) until it is completed. Let’s talk about it right up front so no one is surprised. Although Shell stresses at these meetings that a “final decision has not yet been made,” increasingly it looks (to us) like it has…
Read More “Shell Sets Expectations for What Happens if PA Cracker is Built”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Processing Plants | Statewide MD

Earthjustice Asks Court to Stop Construction at Cove Point LNG
June 3, 2015June 2, 2015

Three weeks ago MDN told you about the frivolous lawsuit filed by Earth[in]justice attempting to stop the Cove Point, Maryland LNG export plant from being built (see DOE Grants Cove Point LNG Final Approval, Earthjustice Sues). Earth[in]justice sued on behalf of themselves (they are a small group of Washington, DC lawyers backed by Big Green money), and on behalf of Chesapeake Climate Action Network, Patuxent Riverkeeper, and the Sierra Clubbers. Meanwhile, Dominion, the owner of the project, has pushed forward with construction at the site. Dominion is about to begin construction on the foundation of the new facility sometime in June, so Earth[in]justice has just filed another lawsuit–a request for a cease and desist order to stop Dominion from constructing the foundation until after their frivolous lawsuit has a chance to get in front of a sympathetic judge…
Read More “Earthjustice Asks Court to Stop Construction at Cove Point LNG”
Belmont County | Economic Impact | Education | Ethane | Industrywide Issues | Ohio | Processing Plants

Belmont, OH School Will Need to Accept $ Cut from Cracker Project
June 1, 2015June 1, 2015

The teachers’ unions won’t like this one. As part of the “aggressive incentive package” (not yet disclosed) by Ohio Gov. John Kasich in order to lure an ethane cracker plant to the state, the local school district in Belmont County will have to accept concessions. That is, John Kasich wants to deny the lil’ chil’ren money OWED to them. The Shadyside school board will need to sign off on any property tax deal cut with the companies (from PTT Global Chemical from Thailand and Marubeni Corporation from Japan) planning to build the cracker plant complex. We seriously doubt that the school will have much choice in the matter. What if the school (and teachers’ unions) say “no”? Will that stop the plant? You can bet your bottom dollar that ain’t gonna happen with John “foreigner hunter” Kasich on the job…
Read More “Belmont, OH School Will Need to Accept $ Cut from Cracker Project”
Economic Impact | Ethane | Industrywide Issues | Ohio | Processing Plants | Statewide OH

OH Gov Kasich Keeps Cracker Plant “Incentives” a Secret–for Now
May 27, 2015May 27, 2015

We continue to find it deliciously ironic that the jingoistic man who hates having “foreigners” from places like Texas, Oklahoma and Louisiana come to work in his state in the oil and gas fields, Ohio Gov. John Kasich, is the man who is desperately courting a Thai and Japanese joint venture to invest billions in his state. Along with that investment will come workers from those countries. We’re talking, of course, about the recent announcement that that PTT Global Chemical, Thailand’s largest integrated petrochemical and refining company, and money partner Marubeni Corporation, a Japan-based company, have selected Belmont County, OH as the location to build a $5 billion ethane cracker plant complex (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). The key negotiator of the deal is JobsOhio, which is an agency set up by Kasich to promote the state. That is, JobsOhio = John Kasich. Now we learn, from none other than PTT, that JobsOhio/Kasich offered “an aggressive incentive package” to lure the project there. How aggressive? JobsOhio (i.e. Kasich) is keeping the details of the incentive package secret until PTT signs the paperwork to proceed with the project–something that won’t happen for at least a year or two…
Read More “OH Gov Kasich Keeps Cracker Plant “Incentives” a Secret–for Now”
Ethane | Industrywide Issues | Processing Plants

OOGA: Cracker Plants Would Turn Ethane from Expense into Cash
May 26, 2015May 26, 2015

There are three potential, large scale ethane cracker plants in play in the Marcellus/Utica region: Shell with a proposed plant in Beaver County, PA; Odebrecht with a proposed plant in Wood County, WV; and PTT Global Chemical with a proposed plant in Belmont County, OH. Of the three, Shell’s project seems the most likely to get built. The Odebrect plant is on hold, and the PTT plant is the new kid with lots of fanfare–but it’s way to early to gauge whether or not it’s a serious venture. We’ve written a number of stories over the years about the enormous economic benefits of a cracker plant–the jobs in building the plant, and then the jobs at the plant and the jobs for dozens/perhaps hundreds of satellite plants that will locate near it. The economic impact from a single cracker plant is upward of a staggering $20 billion. One of the often overlooked and little-talked-about aspects of the plants is what it will do for drillers. Right now a lot of ethane, the hydrocarbon that will feed these plants, is being produced in the tri-state area of PA, WV and OH. And right now ethane is an expense. Ethane is costing drillers money! They have to dispose of it somehow. When a cracker plant opens, drillers can then sell ethane to the plant and make money on ethane. It magically turns from an expense into cash…
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Belmont County | Ethane | Industrywide Issues | Ohio | Processing Plants

Belmont County, OH Ethane Cracker to Get 3rd Partner
May 19, 2015May 19, 2015

More movement on the recently announced $5 billion ethane cracker in Belmont County, OH being planned by two companies from Thailand and Japan (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). The new news is that the two companies are seeking a third company to become a partner (i.e. contribute cash) to help them build it. PTT Global Chemical from Thailand will be the majority owner with a 51% stake. Japan’s Marubeni Corp is the money manager/investor for the project. According to PTT, five other companies are interested in becoming the third partner…
Read More “Belmont County, OH Ethane Cracker to Get 3rd Partner”
Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

WV Officials Say Odebrecht Considering Reconfigured Cracker Plant
May 19, 2015May 19, 2015

As MDN told you a month ago, Brazilian company Odebrecht is signaling they may not build an ethane cracker plant near Parkersburg, WV after all (see Odebrect Pushes the Pause Button on WV Ethane Cracker). Which is a big disappointment, since the project seemed to have so much forward momentum. However, Gov. Earl Ray Tomblin’s representatives are still not defeated–far from it. They don’t see Odebrecht’s statement that the plant “needs to be re-evaluated” (Odebrecht’s words, not ours) as a definite “no” so they’re continuing to hold out hope that it will get built, but perhaps modified from its original plan…
Read More “WV Officials Say Odebrecht Considering Reconfigured Cracker Plant”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

More Signs Shell is Close to Decision on PA Ethane Cracker Plant
May 15, 2015May 15, 2015

More signs that Shell is much closer to a decision on whether or not it will build an ethane cracker plant in Monaca (Beaver County), PA. An executive vice president with Shell Chemicals, speaking off-script at an event in Germany, said the company expects to make a decision “soon.” After that an official Shell spokesman, speaking on-script, came along to clean up the EVP’s poopy mess and said there is no timeline on a decision. Another positive sign, according to the EVP, is that the front-end engineering and design study on the project has been completed. But according to the spokesman, even though the study is done, there are “still hurdles” before making such a large investment decision. So it’s a tit for tat, back and forth. Our take: even though we’re suffering from cracker fatigue, we continue to be hopeful that Shell will be the first of those to announce a possible cracker to actually pull the trigger and build it…
Read More “More Signs Shell is Close to Decision on PA Ethane Cracker Plant”
Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | XTO

XTO Files Paperwork to Double Size of NGL Plant in W PA
May 12, 2015May 12, 2015

In 2013 XTO Energy began operation at its very own natural gas liquids (NGL) cryogenic processing facility in Butler County, PA (see XTO’s New NGL Recovery Plant in Butler County, PA Now Online). Life is good in the midstream. According to the Pittsburgh Business Times, XTO has just filed paperwork with the state to build a new plant at the site, doubling capacity at the facility…
Read More “XTO Files Paperwork to Double Size of NGL Plant in W PA”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Close on PA Cracker Plant Property in “Next Few Months”
May 11, 2015May 11, 2015

Last week we told you a positive sign that the proposed $2-$3 billion ethane cracker plant to be built by Shell in Monaca (Beaver County), PA was the joint information session recently held by the Dept. of Environmental Protection and Shell to discuss an air quality permit the DEP will issue for the project (see Progress: DEP & Shell Hold Info Session on PA Cracker Plant). Here’s yet another very encouraging sign: Horsehead Corporation, which still owns the site Shell would use to build the plant, said in their first quarter update that they expect to close on a sale of the property to Shell “within the next few months”…
Read More “Shell to Close on PA Cracker Plant Property in “Next Few Months””
Air Quality | Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Progress: DEP & Shell Hold Info Session on PA Cracker Plant
May 6, 2015May 6, 2015

Another positive sign that Shell continues to be very serious about building a multi-billion dollar ethane cracker plant in Monaca (Beaver County), PA. Yesterday representatives from Shell and the PA Dept. of Environmental Protection held a two-hour meeting (with Q&A) to discuss the air quality permit required to build the plant. The Pittsburgh Post-Gazette reports the crowd in attendance was almost all in favor of the project. Air wasn’t the only issue discussed–some had questions about potential noise from the plant. The session began with Q&A and ended with two dozen or so speakers who had signed up to give official, on the record comments about the plant…
Read More “Progress: DEP & Shell Hold Info Session on PA Cracker Plant”
Belmont County | Ethane | Industrywide Issues | Ohio | Processing Plants

FirstEnergy Says Talk of Selling Land for OH Cracker “Premature”
May 4, 2015May 4, 2015

Two weeks ago MDN brought you the good news that two foreign companies–one from Thailand and the other from Japan–are teaming up with the aim of building a $5 billion ethane cracker plant in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). A day later we shared with you Belmont County’s enthusiasm for the project, and our own “cracker fatigue” (see Belmont County Elated with Cracker Plant Announcement (Drip)). These projects take years and have more ups and downs than a roller coaster. It seems our words of advice to temper enthusiasm for this new project are already bearing out. Utility company FirstEnergy owns the land where the cracker plant would, theoretically, be built. FirstEnergy is saying wait a minute, we haven’t agreed to sell that land to anybody…
Read More “FirstEnergy Says Talk of Selling Land for OH Cracker “Premature””
Belmont County | Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants

Belmont County Elated with Cracker Plant Announcement (Drip)
April 24, 2015April 24, 2015

We hate to rain on Belmont County, OH’s parade, but we have to point out their celebration over the announcement about a potential ethane cracker plant announced on Wednesday may be a bit premature (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Yes, we’re super excited at the prospect of a cracker plant getting built somewhere in the northeast–and if it’s this one, to be built by Thailand and Japan, we’ll be as elated as the officials in Belmont County are (see below). However, we would like to point them to Beaver County, PA, about an hour’s drive across the border, where local officials there have been waiting for more than three years for Shell to get off the pot with a project to build a cracker plant there. Elation–when it comes to these cracker plant projects–sooner or later turns into concern, and eventually into dimmed and elusive hope. The one thing Belmont County CAN celebrate is that the company proposing to possibly build the cracker plant in the county will spend around $150 million to evaluate the site first–so at least the county will get a bit of an economic bump from that…
Read More “Belmont County Elated with Cracker Plant Announcement (Drip)”
Belmont County | Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants

It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site
April 23, 2015April 23, 2015

As we told you Tuesday, Ohio is now squarely in the ethane cracker race (see Rumor: Ohio Cracker Plant Announcement Coming This Week). As predicted, yesterday Ohio Gov. John Kasich and Belmont County, OH officials announced a pair of companies from Thailand and Japan were partnering with the aim of building an ethane cracker plant in Belmont County (see the announcement below). It is a $5 billion project, according to media reports–larger than the price tag for both the possible Shell ethane cracker in Beaver County, PA and the Odebrect ethane cracker/petrochemical facility in Parkersburg, WV–which is now on pause (see Odebrect Pushes the Pause Button on WV Ethane Cracker). Speaking of which–you may now color us skeptical and jaded that any of these projects, including the one in Ohio, will ever get built…
Read More “It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site”