Ohio Congressman “Extremely Optimistic” PTT Will Build Cracker
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 PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). The company then optioned more land surrounding the site they just purchased (see PTT Global Buying Land Next to Proposed Ohio Cracker Site). Those are VERY positive signs in our book. Here’s another positive sign. OH Congressman Bill Johnson, whose district includes the location for the proposed PTT cracker plant, recently told members of the Ohio Valley Oil and Gas Association that he is “extremely optimistic” that the project will get built. On what does Congressman Johnson base his optimism?…
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Work is now underway on Shell’s $6 billion ethane cracker in Beaver County, PA. What’s the status of the region’s second likely cracker plant, in Ohio? PTT Global Chemical previously announced they are interested in building a $5 billion petrochemical complex, including an ethane cracker, in Belmont County, OH at the site of the old R.E. Burger power plant. However, they have repeatedly said a “final investment decision” (FID) will not happen until the end of 2017. This is the same routine Shell used. In fact, Shell dragged out their FID a lot longer than PTT has. As with Shell, we look for signals that the FID will be a positive decision to move forward with construction. And as with Shell, we see those positive signs. Shell purchased the land for the site before announcing their FID. As we told you last month, PTT has now done the same–buying the former R.E. Burger site from FirstEnergy for $13.8 million (see 
Although a final investment decision (FID) is still months away, Thailand-based PTT Global Chemical decided spending $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH, would be a good investment. Which they have now done. The deal, which closed in June, is just now coming to light. PTT bought the land for the site from FirstEnergy Corporation. The deal was recorded at the Belmont County Courthouse on June 14. This is yet another sign that PTT will make a positive FID later this year. Even though PTT just bought the land, work was previously done on the site to clear it and get it ready for construction, as we reported in December (see 
Last Thursday Rice Energy President Toby Rice gave Ohio U.S. Senator Rob Portman a tour of the “Son Uva Digger” well pad in Belmont County, OH. Cool name. Although no doubt Portman thought of the trip as a photo-op, from his comments following the visit, it sounds like Portman actually learned something. Portman now “gets it” with respect to rapid changes in technology that have vastly reduced the footprint of drilling operations–better for the environment, less hassle for residents who live nearby. He also gets just how much money shale drilling is pumping into the local, state and national economy. Sounds like the Rice brothers have made a convert of Sen. Portman–so three cheers for them! This is how we win the battle–one person at a time. And if that person happens to be a U.S. Senator, all the better. Here’s how it went last week when Rob went to Belmont… 
It was full speed ahead for Energy Transfer’s Rover Pipeline construction project in Ohio–until a series of drilling mud spills hit, including one that dumped some 2 million gallons of bentonite mud into a wetland near the Tuscarawas River in Stark County, OH (see 
While reviewing documents filed with the Federal Energy Regulatory Commission (FERC) for the Energy Transfer Rover pipeline project, we came across a letter filed by ET yesterday. The letter (full copy below) addresses the recent “inadvertent return” (i.e. major leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see 
Some 70 years ago Allen Danos Sr., a descendant of south Louisiana farmers, borrowed $2,000 to start a small tugboat company with his brother-in-law. The small business grew and expanded into the oil and gas business, attracting customers like Gulf Oil (which later became Chevron). Over the years Danos has continued to grow. Today it is an oilfield services company (OFS) servicing some of the world’s largest drillers with coating, construction, environmental, fabrication, instrumentation and electrical, production workforce, project management, consulting and more. Danos is still headquartered in Louisiana (with multiple offices in that state), but also with major offices in Texas–and in the Marcellus/Utica region. Danos is expanding in our region, opening a new facility in Martins Ferry, OH. They’ve also decided to close the Canonsburg, PA office and merge it into the Martins Ferry office. Here’s the announcement…
Rice Energy turned in it’s 2016 update this week, along with a look at what’s coming in 2017. As for top line financial numbers, Rice lost about the same in 2016 as they did in 2015: A loss off $298 million in 2016 vs. a loss of $291 million in 2015. Although Rice owns and drills on a small acreage position in the Texas Barnett Shale, the vast majority of their focus continues to be in the Marcellus/Utica. The company plans to spend $1.5 billion in 2017, broken out as follows: $1.035 billion for drilling and completion activity in the Marcellus/Utica shale plays; $225 million for land purchases; and $315 million spent by Rice Midstream ($255 million for gas gathering and compression and $60 million on water services). With that money, Rice expects to drill 75 new wells and complete another 55 wells in the Marcellus in 2017. In the Utica, Rice plans to drill 20 new wells and complete 20 wells in 2017. Land acquisition will happen in three counties: Greene and Washington Counties (in PA), and Belmont County (in OH). How much will they pay, on average, to lease new acreage? We have an answer for that…
PTT Global Chemical, based in Thailand, announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see 
As we inch closer to a final investment decision (FID) on the PTT Global Chemical ethane cracker in Belmont County, OH, and with President Trump’s emphasis on using steel manufactured here at home for pipeline projects like Keystone XL, some are asking whether the PTT project (if it gets approved) will use American steel–or cheap, imported steel. It’s a good question…
We have some progress and movement to report about PTT Global’s proposed $6 billion ethane cracker project coming to Belmont County, OH. The rumor is that PTT will announce a final investment decision (FID) in March–just two short months away. We wait with eager anticipation! However, in the meantime, the project appears to be proceeding full speed ahead. The latest evidence of that comes from a recent permit issued for the project by the Ohio Environmental Protection Agency (EPA). The permit allows the cracker plant to discharge wastewater (which is far different from drilling wastewater) into the Ohio River. The EPA notes, in granting the permit, that although the discharge may “result in changes from current water quality conditions” the discharge “cannot violate Ohio’s water quality standards that protect human health and the environment.” Next up is an air permit from the Ohio EPA, which the agency is currently working on. Here’s the deets on the wastewater permit just issued…
Rex Energy announced yesterday the company has cut a deal with Antero Resources to sell all of Rex’s “Warrior South Area” assets to Antero. Which may should like a big deal, but really isn’t. The assets sold include 4,100 net acres in perhaps the hottest part of the Ohio Utica Shale: Guernsey, Noble and Belmont counties. It also includes 14 Utica Shale wells. However, the wells are only producing 9 million cubic feet per day (MMcf/d) collectively. The sale price is $30 million–or $7,317 per acre. Rex says the acreage and wells are in a “non-core” area for the company. Rex, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. In December the company was warned by the New York Stock Exchange that the per share price is too low and the stock is in danger of being delisted (see 
On Monday MDN reported that the future site for an ethane cracker in Belmont County, OH is now cleared and ready for construction to begin (see 
Yesterday Murray Energy, which operates coal mines in Ohio, Illinois, Kentucky, Utah, and West Virginia, announced it had sold the leases for 5,900 of the acres it owns in Belmont and Monroe counties (in eastern Ohio) to an unidentified shale driller for $63.6 million. That works out to be ~$10,800 per acre. According to Murray officials, the sale will allow the company to focus on its core activity–coal mining. The money will also help the company stay out of bankruptcy court. The sale, which is slated to close “in the coming weeks” doesn’t ID the buyer. But we have a guess as to who bought…
One of NGI’s (Natural Gas Intelligence) ace reporters, Jamison Cocklin, wrote a top notch news/analysis article last Friday in NGI’s Shale Daily publication about the “crucial priority” of new gathering pipelines and pipeline infrastructure in general that’s needed in the Utica Shale. Jamison made the observation that while not every operator in Ohio’s Utica Shale has shifted from focusing on wet gas extraction (concentrating on wells that extract not only methane but also natural gas liquids) to dry gas (or methane only), some of the biggies have. A change in focus doesn’t mean a change in geography. The change in focus from wet to dry is happening in core wet gas counties, including Monroe, Belmont and Jefferson…