Platts: Appalachian Storage Hub tackles investment issue
According to a recent Platts report, the goal of building an Appalachian petrochemicals storage and trading hub will continue to face challenges until several more international corporations make final investment decisions on whether to build ethane crackers in the region.
Shell Chemical had previously made a final investment decision (FID) on plans for a world-scale ethane cracker in Beaver County, Pennsylvania, to take advantage of the ethane produced in association with natural gas production in the Marcellus and Utica shale plays. The proposed $4 billion plant would be the first of its kind in the U.S. Northeast and is expected to kickstart the creation of a petrochemical manufacturing and trading industry in the region.
Other steam crackers proposed for the region are awaiting FIDs. One such plant, proposed by PTT Global Chemical, would be built in Ohio just across the river from Moundsville, West Virginia.
For more information, visit www.platts.com or call (800) PLATTS-8 [752-8878].
Mountaineer NGL to spend $150M on ethane storage facility
Mountaineer NGL Storage plans to spend $150 million -- and potentially as much as $500 million -- on its proposed NGLs storage facility along the Ohio River near Clarington. By 2019, the company hopes to store up to 420 million gallons of ethane, propane and butane in caverns along the river, with the goal of allowing the proposed PTT Global Chemical cracker plant to access the product via pipelines that would only need to stretch about 10 miles.
Since discussion of a Marcellus and Utica shale ethane cracker began, a major obstacle has been a lack of underground storage capacity for NGLs, which is needed to ensure a constant source of ethane to the cracker plant in the event of supply disruptions. The Mountaineer NGL Storage project could be the first part of the Appalachian Storage Hub, which could eventually lead to $36 billion worth of investment and about 100,000 permanent jobs.
For more information, visit www.esvllc.com or call (720) 318-9738.
Savage expands operations with new Mexico petroleum terminal
A subsidiary of Savage Cos. will commence operations of its new petroleum transload terminal in central Mexico in early 2018, with plans to significantly expand terminal capabilities later in 2018. Located near the city of Querétaro, the terminal is served by the Kansas City Southern de Mexico railroad and provides access to strategic ports and U.S.-based refinery centers.
The Queréaro terminal will provide an optimal location for transferring and storing refined petroleum products. Initially, the terminal will serve manifest rail volumes, transferring products directly from railcars into trucks. Following permitting approvals, Savage plans to add tank storage and fixed facilities for high-speed rail unloading, product blending and truck loading. At full buildout, the terminal will handle unit train volumes.
For more information, visit www.savageservices.com or email info@savageservices.com.
Nat gas inventories remain higher than five-year average
Working natural gas inventory levels in the Lower 48 states since April 2017 remain higher than the previous five-year average (2012-2016), according to the Energy Information Administration's (EIA's) Weekly Natural Gas Storage Report.
Natural gas storage levels typically decrease during the winter heating season (November-March) and increase during the injection season (April-October). In 2017, power sector demand for natural gas was lower than previous years, but other factors also changed. More natural gas was exported by pipeline and ship, and production increased substantially. In the fall, storage injections were relatively high, largely because of increased production, milder weather, and lower natural gas demand from the electric power sector following power outages caused by Hurricanes Harvey and Irma.
For more information, visit www.eia.gov or call (202) 586-8800.