Processing Plants

Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
Read More “Clash of the Ethane Cracker Titans: PA vs WV Smackdown”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

Officials Say Cracker Will be Truly Huge for WV Jobs & Economy
November 15, 2013November 15, 2013

One final story in MDN today about WV ethane cracker mania (see our other two stories posted today for full coverage of the announcement from yesterday). Although WV Gov. Earl Ray Tomblin and officials with the companies that would build and operate a proposed ethane cracker in WV–Odebrecht and Braskem–were careful to say this is a preliminary announcement and not a 100% done deal, it’s still just too juicy a carrot to leave alone for the Tomblin administration.

Although Tomblin says Oderbrecht is “exploring” the possibility of building an ethane cracker, he’s also shouting that this is the best thing for West Virginia since sliced bread was invented (our words, but certainly his sentiment). And sure enough, right on the heels of his announcement, Tomblin officials were talking about the thousands of new jobs this project will generate and the incredible economic impact it will have on WV. IF built, they are 100% correct, this will be an economic and jobs-generating engine like none we’ve seen in the northeast for generations–no doubt about it. The key word, though, is IF…
Read More “Officials Say Cracker Will be Truly Huge for WV Jobs & Economy”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

BIG NEWS: West Virginia is Getting an Ethane Cracker Plant
November 14, 2013November 14, 2013

The Parkersburg News and Sentinel is reporting that WV Gov. Earl Ray Tomblin will make an announcement today that has been years in coming: West Virginia is getting its own “multi-billion-dollar ethane cracker chemical plant” and it will be located in Wood County. If this rumor, which seemingly originates with reliable sources, bears out, this is seriously good news for WV. In fact, we’re jumping up and down happy! For years MDN has been pulling/cheerleading/advocating for WV to get their own cracker–we think they deserve it.

The speculation is that Tomblin sealed a deal for a cracker plant on a recent European trade mission trip (see WV Gov Going to Europe to Find Him a Cracker). While he was in Europe, he said by phone he would have a big announcement a few days after he returned home. We speculated at the time, three weeks ago, that he might be talking about a cracker (see Did Gov Tomblin Find a European Investor for a WV Cracker Plant?). Was our speculation accurate? We will know today…
Read More “BIG NEWS: West Virginia is Getting an Ethane Cracker Plant”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

PA Ethane Cracker – On Again, Off Again…Now On Again?
November 13, 2013November 13, 2013

MDN recently brought you rumors (evidence?) that the prospects of Shell building a multi-billion dollar ethane cracker plant in western Pennsylvania were seriously dimming (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). The most ominous two pieces of evidence against Shell moving forward was doubt cast by industry expert Rusty Braziel and the statements from Shell’s outgoing CEO Peter Voser who said that Shell would not be able to build all three major projects they now have on the books (one of the three being the PA cracker plant). Delays in committing to the project, negative speak from the CEO and numerous NGL and ethane pipelines coming online seem to cast doubt on Shell building the cracker.

But wait, what’s this? We have a new, happier rumor to share with you. According to a reliable source, Shell has hired Linde and Bechtel to perform front end engineering and design (FEED) work on the PA cracker plant! It seems to us if the cracker were truly dead Shell would not spend big bucks to design it (although we may be wrong on that score). Here’s the latest rumor courtesy Gas Business Briefing:
Read More “PA Ethane Cracker – On Again, Off Again…Now On Again?”
Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants

The Marcellus/Utica Games: MarkWest Catching Fire
November 13, 2013November 13, 2013

With more infrastructure projects than you can shake a stick at (22 under construction right now, most of them in the Marcellus and Utica Shale region), and with revenue up, pumping capacity up–with everything up that should be up–you’ll pardon our pun on the forthcoming Hunger Games movie by saying that MarkWest Energy is truly catching fire in the Marcellus and Utica Shale!

Yesterday MarkWest released their third quarter 2013 operations and financial update, and there’s a LOT in there about the Marcellus/Utica:
Read More “The Marcellus/Utica Games: MarkWest Catching Fire”
Blair County | Energy Services | Industrywide Issues | Marcellus GTL | Pennsylvania | Processing Plants

Altoona’s Marcellus Gas-to-Liquids Plant Slightly Delayed
November 13, 2013November 13, 2013

An update on a gas-to-liquids (GTL) plant to be built near Altoona, PA that will convert abundant and cheap Marcellus Shale gas produced in the area into diesel fuel. MDN told you in March that Marcellus GTL announced they will build a new GTL plant in the area (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). Plans called for construction to begin on the new facility by the end of this year.

The bad news is that construction on the new GTL plant will not begin by the end of this year. “Typical project optimism” is the explanation offered by Marcellus GTL’s executive VP Paul Hamilton. The good news? The project is still on and construction is now estimated to begin somewhere between April and June 2014…
Read More “Altoona’s Marcellus Gas-to-Liquids Plant Slightly Delayed”
Energy Services | Industrywide Issues | MarkWest Energy | Marshall County | NGLs | Noble County | Ohio | Processing Plants | West Virginia

MarkWest Hits 2.2 Bcf/d in Processing, 2 New Plants Go Live
November 11, 2013November 11, 2013

Marcellus midstream (pipelines and processing plants) heavyweight MarkWest Energy issued an operations update last week to trumpet the fact that two new cryogenic processing plants–to separate wet gas compounds from methane–have now started operations in the Marcellus/Utica. With the additional capacity of these new plants, MarkWest’s total processing capacity is now 2.2 billion cubic feet per day (Bcf/d) of natural gas processing in the Marcellus/Utica. It is an impressive number and will only grow in the months and years ahead.

MarkWest announced they have begun operations at their fifth Majorsville (Marshall County), WV cryogenic processing plant and at their first Seneca (Noble County), OH cryogenic processing plant. Here’s the justifiably proud announcement from MarkWest on reaching the 2.2 Bcf/d milestone, on their way to 4 Bcf/d by the end of next year:
Read More “MarkWest Hits 2.2 Bcf/d in Processing, 2 New Plants Go Live”
Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Processing Plants | Regulation | Statewide OH | Utica Shale

Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines
November 11, 2013November 11, 2013

Last week MDN told you of a new change in how natural gas gathering pipelines are regulated in Ohio. Until last week, the safety of gathering pipelines was fuzzy–really no one in charge of ensuring safety for gathering lines. That changed when the Public Utilities Commission of Ohio (PUCO) took over as lead agency for regulating that particular type of pipeline (see PUCO Now Regulates Gathering Pipelines in Ohio). But there are a few different kinds of pipelines and depending on which kind, a mish mash of federal and state (and even local) agencies are in charge of permitting and inspecting said pipelines.

The reality of who regulates what when it comes to pipelines and other aspects of shale drilling is complex. PUCO decided it was a good idea to issue a press release/update to clear it all up. Apparently their office was flooded with requests for explanations, so they developed a handy chart to indicate who regulates what in Ohio’s shale drilling industry. It’s a very helpful update (and chart) for not only understanding who regulates pipelines in Ohio, but also who permits and regulates wells, compressor plants, processing plants–the whole enchilada…
Read More “Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines”
Antero Resources | Doddridge County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Processing Plants | West Virginia

MarkWest to Build 5th Cryo Plant in WV Courtesy Antero Resources
November 8, 2013November 8, 2013

MarkWest Energy continues its Marcellus/Utica infrastructure expansion. In an announcement yesterday, MarkWest said they will build a fifth (!) 200 million cubic feet per day cryogenic gas processing plant at its Sherwood (Doddridge County), WV facility. In the latest edition of the Marcellus and Utica Shale Databook (2013 Volume 2), MDN lists all of the projects announced by MarkWest and others (111 projects in all). This one is brand new and would be 112. MDN estimates this new cryogenic processing plant along with two others currently under construction at the Sherwood complex cost in the neighborhood of $200 million each to build.

Cryogenic plants separate natural gas liquids (NGLs, or “wet gas”) from methane (“dry gas”). Why a fifth plant at the same facility? It’s being built at the request of Antero Resources. MarkWest signed a deal with Antero to provide them with wet gas processing capacity at the plant. MarkWest says the new plant will be built and online by third quarter of 2014. When it goes online, the total processing capacity at the Sherwood complex will be 1 billion cubic feet of natural gas per day–a really astonishing number. Here’s the MarkWest announcement:
Read More “MarkWest to Build 5th Cryo Plant in WV Courtesy Antero Resources”
Energy Companies | Ethane | Gulfport Energy | Industrywide Issues | Ohio | Pipelines | Processing Plants | Shell | Statewide OH | Utica Shale

Gulfport Signed Up to Ship Ethane to Shell Cracker, If…
November 6, 2013November 6, 2013

Gulfport wants to send the ethane it produces in Ohio’s Utica Shale to Shell’s ethane cracker plant, if that plant ever gets built. Gulfport announced on their 3Q13 analyst call yesterday that they are one of the companies who signed on during Shell’s cracker plant open season, pledging to provide ethane for the new cracker plant. Problem is, the prospects that the plant will actually get built are increasingly in doubt (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). Even so, we guess it’s a good plan to be first in line when/if that plant opens.

MDN friend Bob Downing from the Akron Beacon Journal chronicles a few more choice tidbits from the Gulfport 3Q13 analyst call yesterday, including Gulfport’s ethane yearnings, some smart strategies Gulfport is employing to sell their dry gas and wet gas, how pipeline locations influence their drilling decisions, and an inside look at how much it costs Gulfport to drill a single Utica Shale well…
Read More “Gulfport Signed Up to Ship Ethane to Shell Cracker, If…”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?
November 1, 2013November 1, 2013

On an analyst call yesterday, Shell’s outgoing CEO Peter Voser stoked fears that Shell may be ready to pull the plug on the announced ethane cracker plant planned for Monaca, PA. According to Voser, the company will make “hard choices” over the next few quarters about which projects it will fund and build. Specifically, Voser said the company had previously announced three big projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. He said Shell cannot build all three projects. Gulp.

Voser’s comments have led to speculation that the ethane cracker plant in PA will get the ax, especially with two ethane pipelines coming online by the end of this year, and two more mixed NGL pipelines coming online in the next few years (see our companion story today, “Midstream Knife Fight”). Just last week we highlighted a story from the Wall Street Journal and industry analyst Rusty Braziel which also cast doubt on the PA cracker plant (see WSJ Says PA Cracker Plant May Not Happen After All). Are things going south–literally and figuratively–for the Shell cracker? Yesterday’s comments from Voser:
Read More “Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?”
Access Midstream Partners | Cardinal Gas Services | Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica East Ohio Midstream | West Virginia

Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015
October 31, 2013October 31, 2013

Access Midstream Partners is heavily involved with the pipeline/processing plant infrastructure buildout happening in both the Marcellus and Utica Shale region. Access is the lead company in the joint venture known as Cardinal Gas Services (the other partners being TOTAL and EnerVest), and an important partner in Utica East Ohio Buckeye (along with M3 Midstream and EnerVest). According to Access CEO Mike Stice on an investors call yesterday, his company’s total investment in the Marcellus Shale by the end of 2015 will be $1.8 billion, and the total investment in the Utica will be $2 billion.

A combined $3.8 billion investment in the northeast spanning 2012-2015–from one company. Simply astonishing! Here’s a few highlights from Stice’s talk yesterday…
Read More “Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015”
Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
Read More “Range Resources’ Top 10 Wet Gas Wells, New Company Presentation”
Access Midstream Partners | Energy Companies | Energy Services | EnerVest | Harrison County | Industrywide Issues | M3 Midstream | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Gov. Kasich “Turns the Valves” at Scio Fractionation Plant
October 30, 2013October 30, 2013

MDN told you that Ohio Gov. John Kasich went foreigner-hunting on Monday and was glad to find no “foreigners” (i.e. out-of-state workers) lurking around the Hickory Bend processing plant in Mahoning County that he was visiting for a dedication ceremony (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). While he was in the general neighborhood, Gov. Kasich also slipped over to Harrison County on Monday to check out the Scio fractionation plant (now being called the Harrison Hub), to see if there were any foreigners hiding there. Nope! A banner day for Gov. Kasich!

The Scio plant, built by the Utica East Ohio Buckeye joint venture (M3 Midstream, Access Midstream and EnerVest) held a “turn the valves” dedication on Monday to take advantage of Kasich being in the area. Phase 2 of the plant went online in July adding an additional 45,000 barrels per day of NGL processing capacity. Phase 3 is now being build and due to go online in early 2014. Highlights from the Kasich visit and more details about the plant from UEO officials…
Read More “Gov. Kasich “Turns the Valves” at Scio Fractionation Plant”
Economic Impact | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | Mahoning County | NGLs | NiSource | Ohio | Pennant Midstream | Pipelines | Processing Plants | Utica Shale

OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found
October 29, 2013October 29, 2013

Ohio Gov. John Kasich was on hand yesterday for a ceremonial ribbon cutting for the Hickory Bend cryogenic processing plant in Mahoning County, OH. Pennant Midstream, a joint venture of NiSource and Hilcorp’s Harvest Pipeline subsidiary, dedicated the plant by inviting Kasich and a number of state and local officials. The Hickory Bend processing plant separates natural gas liquids (NGLs or “wet gas”) from methane (or “dry gas”). It has been up and running since summer, however, it won’t begin shipping separated NGLs to the M3 Momentum fractionation plant in Kensington until December. Hickory Bend is also a network of 55 miles of wet gas gathering pipelines in the region.

Gov. Kasich had plenty to say as he dedicated the plant. In typical fashion he was there sniffing out “foreigners” and was happy to pronounce he didn’t find any. (For an example of Kasich’s obsession with “foreigners”–i.e. out of state workers–see OH Gov. Kasich Goes Foreigner-Hunting in Strasburg.) Kasich also dissed Pennsylvania in his comments. A handful of protesters were on hand for the ceremony, bleating about methane migration, but they were far enough away that nobody heard them…
Read More “OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

WSJ Says PA Cracker Plant May Not Happen After All
October 24, 2013October 24, 2013

It seems like MDN has been writing about Shell’s proposed $2 billion ethane cracker plant for like, ever. You can scour our archive of stories mentioning the Shell cracker plant. We’ve chronicled the ups and downs. Where is this important project at right now?

According to the Wall Street Journal, the prospects that Shell will build an ethane cracker plant in Pennsylvania have now “faded”…
Read More “WSJ Says PA Cracker Plant May Not Happen After All”