Mountaineer NGL Storage Hub Reapplies for Permits, Building Soon?
Last fall Mountaineer NGL Storage, a $500 million project in Monroe County, OH to build underground storage for ethane and other NGLs, asked Ohio regulators to cancel a key permit for the project (see Mountaineer Asks Ohio to Cancel NGL Storage Hub Permits). Our understanding was that until PTT Global Chemical makes a final investment decision (FID) to build an ethane cracker in nearby Belmont County, OH, Mountaineer would not be ready to proceed. The two projects will move along together. We thought Mountaineer would wait to reapply for the permit after PTT announces. PTT has not announced, yet according to statements from Mountaineer’s CEO, the company is now waiting on permits to proceed and hopes to begin construction “later this year.” Ergo they have already reapplied.
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All three M-U states received permits to drill new shale wells last week. Pennsylvania received 10 new permits. Ohio received 6 new permits. And West Virginia received 3 new permits.
Last November we brought you the news that PTT Global Chemical was changing the timeline (again) for a final investment decision (FID) to build a $10 billion ethane cracker plant in Belmont County, OH, this time to the middle of 2021 (see 
Aubrey McClendon, the co-founder of Chesapeake Energy and the guy most responsible for discovering and commercializing the Ohio Utica Shale, once famously said the Utica “is the best thing to hit the state of Ohio economically since maybe the plow.” And indeed it has been. The Utica is often overshadowed by its larger and more productive cousin the Marcellus Shale. According to Mike Chadsey from the Ohio Oil and Gas Association, the Utica has never really gotten the level of attention and respect it deserves.
On Friday, representatives of a “dark money” political action committee called Generation Now signed a guilty plea admitting their part in the biggest bribery scandal to ever hit Ohio. Generation Now was set up as a social welfare nonprofit but in reality was a shell organization that received “tens of millions of dollars” from FirstEnergy as part of a $61 million bribery scandal to pass and keep passed House Bill (HB) 6 which funnels over $1 billion from Ohio ratepayers to FirstEnergy in order to keep the company’s unprofitable nuclear power plants running.
On Joe Biden’s first day in occupying the White House, he signed an Executive Order (EO) suspending new oil and gas leasing while the Interior Department reviews existing leases and permitting practices for 60 days. The aim is to make the federal lease ban permanent. However, some permits on existing leases will continue to be issued during the 60-day review period. You may think Biden’s federal lease ban does not affect the Marcellus/Utica region. You would be wrong.
In 2016 a group of business and government leaders from Ohio and West Virginia in the Mid-Ohio Valley banded together to form an economic development group called Shale Crescent USA, or SCUSA (see 
Diversified Gas & Oil (DGO) owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil)–in the Appalachian Basin. DGO currently owns over 400 Marcellus/Utica shale wells in their portfolio too. The company just added to their inventory of shale wells, closing on the purchase of five Utica Shale wells in Monroe County, OH. The purchase price for all five? $8.4 million.