ATEX Express Ethane Pipeline Hits Potential Snag in Ohio
Enterprise Products Partners recently announced a 1,230 mile ethane pipeline from Pennsylvania to the Gulf Coast (see this MDN story). Dubbed the ATEX Express (Appalachia to Texas), the proposed pipeline includes building 353 miles of new pipeline through Ohio. But the Ohio stretch of construction has hit a potential snag.
Ohio Power Siting Board (OPSB) officials say Enterprise must get their approval before building it, but Enterprise disputes the OPSB has the authority to oversee construction the ATEX Express in the state. The dispute hinges on whether the natural gas liquid ethane that will flow through the pipeline is a liquid or a gas. Ethane under pressure is a liquid, but when it hits the air, it turns into a gas.
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Under pressure from low commodity prices for natural gas causing a cash deficit for drilling, Chesapeake Energy is looking to sell off some of its oil and gas fields in Texas, Mexico and Oklahoma so it can continue to concentrate on drilling in eastern Ohio’s Utica Shale and other “wet gas” areas of the country.
The Utica Landowner Group of eastern Ohio has just cut a deal with Antero Resources for what is believed to be the highest amount paid yet for a lease deal: $5,900 per acre for a signing bonus, and 21 percent royalties. The deal covers land in Belmont, Monroe and Noble counties in Ohio.
West Virginia, Pennsylvania and Ohio are all in the hunt to land an ethane cracker plant in their respective states (see the