Western PA/NY Pipeline Company Starts Separating NGLs for More $$
Anticipating that Marcellus and Utica Shale drilling will one day come to northwestern Pennsylvania and western New York, the owner of a pipeline system that services 6,500 older vertical wells in that area has just made an upgrade. EmKey Energy has just opened a new $10 million gas processing plant east of Union City, PA where five of EmKey’s underground pipelines converge. And here is the beauty and the brilliance. That new processing plant does nothing more than separate out natural gas liquids from the incoming stream of gas–NGLs that have been there all along but weren’t economical to separate. Now the plant separates butane, propane and ethane and sells them for bigger money than they would have been sold as part of the methane stream.
According to EmKey’s founder Oivind Risberg, the $10 million upgrade is profitable and doing well. But the real gravy train will arrive when shale drilling enters the area and his pipelines hook up to the deeper Marcellus and Utica Shale. That’s when the really big payoff will happen. Brilliant! Here’s more about EmKey’s “make good money now, but boatloads of it later when shale drilling arrives” strategy…
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MDN is taking a rare day off, in observance of the Easter holiday. We wish you a Happy Easter, Happy Passover, and for our pagan friends, Happy Earth Day. 😉
Yesterday the Pennsylvania Department of Conservation and Natural Resources (DCNR) released a new report titled “Shale-Gas Monitoring Report” (full copy embedded below), the first in a series of ongoing reports on the impacts of Marcellus Shale drilling on PA’s state-owned land, including state forests. The DCNR was given a $6 million budget more than three years ago to study drilling impacts. This is the first report, eagerly anticipated by anti-drilling groups like PennFuture. Unfortunately for them, the study contains no indications that drilling is a disaster for public lands, as they had wanted it to say. In fact, the report found that out of 2 million acres of state-owned land, only 1,500 acres were converted from “wild space” to use for drilling (roads, drill pads, compressor stations, etc.). That’s 0.075%–not even 1/10th of a single percentage point. In other words–nothing. Another 9,340 acres were partially developed. Still a very low number and not the environmental holocaust predicted by anti-drillers.