Indian Chemical Co. Starts Up in W. Virginia Using M-U Butane
Natural gas liquids (NGLs) include “heavier” hydrocarbons that come out of the ground along with methane (CH4). The most prevalent NGL by volume is ethane (C2H6). Another common NGL is propane (C3H8). And yet another is butane (C4H10). Depending on the location, all of those NGLs are produced in abundance in the Marcellus/Utica region. So, it should not come as a surprise that manufacturing plants that use NGLs as feedstock would decide to locate facilities in the region to leverage low-cost NGLs. India-based Thirumalai Chemicals Ltd. (TCL) is moving into pre-commissioning and startup activities at its new manufacturing facility in West Virginia (near Moundsville, Marshall County) and is progressing toward startup operations. Read More “Indian Chemical Co. Starts Up in W. Virginia Using M-U Butane”
Volatility is the watchword for new permits in the Marcellus/Utica. Three weeks ago, the combined count between Pennsylvania, Ohio, and West Virginia was a measly 8 new permits (see 
In August 2014, the Marshall County, WV board of commissioners voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see 
Data centers—large facilities full of computers—have been in the news a lot over the past year. The internet and tech companies like Facebook, Google, and Amazon gave rise to data centers. But a new/renewed emphasis emerged a year ago with the unveiling of artificial intelligence (AI), which is now being used by a large portion of the population. Did you know that there are currently 4,149 active data centers in the U.S.? And that another 2,788 have been announced/planned, primarily related to AI? That’s from a fantastic new report from the American Edge Project (AEP) and the Technology Councils of North America (TECNA). Earlier this week, they released “America’s AI Surge: Powering Investment, Jobs, and Growth in Every State” (full copy below). We’ve extracted information specific to the Marcellus/Utica region from the report. 
Pipelines in West Virginia (like most other states) pay property taxes. It’s a significant revenue generator for counties. There are many pipelines in Wetzel County, including three NGL pipelines owned and operated by MarkWest (aka MPLX) that connect to the Mobley Gas Plant. In 2022, MarkWest filed a tax return for the pipelines showing a 35% reduction in value due to less-than-forecasted pipeline usage, a concept called “economic obsolescence based on inutility.” The County Assessor for Wetzel County challenged MarkWest’s claim. 
Hancock County, WV, is located in the tippy top of the northern panhandle of West Virginia, surrounded by Pennsylvania on one side and Ohio on the other. Yet somehow Hancock County has been left out of the Marcellus/Utica bonanza happening all around it. It’s not like there isn’t good rock under Hancock. Every other county that touches Hancock has drilled M-U wells within the last year. However, we can’t find any permits for a single shale well in Hancock. Ever. What gives? 
The Marcellus/Utica rig count gained a rig last week in the Ohio Utica. The combined count hit 39 total rigs, the most it has operated in more than a year. That’s great news! It means drilling is picking up in the M-U. Pennsylvania has held at 18 active rigs for four consecutive weeks. Ohio picked up one and now operates 14 rigs. Before last week, Ohio had held the same number of rigs at 13 since September 26. West Virginia maintained its 7 rigs, which it has operated since May 30. There were 24 rigs targeting the Marcellus and 15 targeting the Utica, for a combined 39 rigs in the M-U. 
After a pathetic showing two weeks ago (just 8 permits), last week was a barnstormer—the most permits we’ve seen issued in a single week since we’ve been chronicling permits here on MDN. But, there’s a catch. Last week’s report for the combined three states shows 60 (!) permits issued, with 22 going to Pennsylvania, 24 to Ohio, and 14 to West Virginia. However, Ohio’s numbers are inflated because the Ohio Department of Natural Resources (ODNR) reported numbers last week that stretch back three weeks in time. You may recall Ohio didn’t issue permits for two weeks in a row. They actually issued permits but didn’t report them. So, this report includes 6 permits for the two missing weeks. Still, removing six from the total means 54 permits were issued last week, which remains a record high. Could the spike in the spot price for natural gas in the M-U be the reason? 
Antero Resources, the country’s fifth-largest natural gas producer and largest producer in West Virginia, is growing its WV operations. This morning, the company announced a deal to buy privately held WV driller and midstreamer HG Energy II for a combined (upstream & midstream) $3.9 billion. The deal will add a massive 385,000 net acres to Antero’s existing ~475,000 net core Marcellus acreage position, bringing with it another 850 MMcfe/d in production. The upstream part of the deal will fetch $2.8 billion, while the midstream will get $1.1 billion. HG Energy is a West Virginia corporation with its headquarters office located in Parkersburg. 
Pennsylvania and Ohio should be looking over their shoulders regarding new data centers and their decisions on where to locate them. West Virginia is making serious efforts to be THE destination for new AI data centers to locate in the Marcellus/Utica region. The West Virginia Office of Energy’s recent summit highlighted the state’s unique position to power the booming AI and data center sectors through its vast natural gas reserves. Like PA and OH, WV’s homegrown natural gas offers a reliable, cost-effective, and flexible solution for necessary baseload power. What’s beginning to set WV apart from its neighbors is legislation that explicitly targets data centers. 
Last week, the Baker Hughes U.S. national rig count got wacked good, losing 10 rigs from the previous week. The national count went from 554 to 544 (as of Wednesday, when BH reported the numbers). Bummer. It had gained rigs for each of the prior three weeks. Rigs in the Marcellus/Utica remained the same last week after gaining one rig the week before. Pennsylvania has held at 18 for two weeks in a row. Ohio was the same at 13 rigs, which it has operated since September 26. West Virginia maintained its 7 rigs, which it has operated since May 30. There were 24 rigs targeting the Marcellus and 14 targeting the Utica, for a combined 38 rigs in the M-U.