Reports related to this article:
Project(s): View 7 related projects in PECWeb
Plant(s): View 6 related plants in PECWeb
Released July 16, 2018 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Rising demand for natural gas liquids (NGL) is evident in the U.S. Midwest and Great Lakes regions, which are adjacent to the booming Marcellus and Utica shale plays. Industrial Info is tracking $1.42 billion in regional NGL-related projects that are set to begin construction in the second half of 2018, including storage facilities and pipeline conversions.
Click on the image at right for a graph detailing NGL-related project kickoffs in the Midwest and Great Lakes regions for the remainder of the year, by state.
The U.S. Midwest region includes Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota and South Dakota. The Great Lakes region includes Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin.
Among the biggest developers in the two regions is Mountaineer NGL Storage LLC (Littleton, Colorado), which is seeking permits for more than $2.5 billion in NGL storage projects in Ohio. This includes the $300 million storage cavern complex near Clarington, Ohio, which would include four caverns, each 6,300 to 6,700 feet below ground, with a total capacity of 2 million barrels of NGL sourced from the Utica Shale. Construction would include a truck and rail load-out facility with the potential for future pipeline and river-barge transport.
Developers and supportive legislators hope Mountaineer NGL and similar storage projects will bring the U.S. petrochemical industry back to the Appalachian area. At the recent Appalachian Storage Hub Conference in Ohio, a company official said Mountaineer NGL already has been spent $20 million on the permitting process for the Clarington hub, according to Ohio's Observer-Reporter. For more information, see Industrial Info's project report.
North Dakota's Bakken Shale has been a bonanza for natural gas and NGL producers, and Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) took part in it earlier this year when it kicked off construction on the $125 million Bear Den Phase II expansion in Watford City. The expansion will increase processing capacity to about 170 million standard cubic feet per day and is expected to go into service in the third quarter of 2019. For more information, see Industrial Info's project report.
Earlier this year, the North Dakota Public Service Commission (PSC) approved siting permits for Bear Den Phase II, which the PSC says will reduce natural gas flaring and improve safety in the western oil and gas producing region of the state, according to North American Shale magazine. "[Bear Den Phase II] will mean less truck traffic, less flaring, improved safety... and enhanced energy independence for America," said Randy Christmann, PSC chairman, according to the magazine. Phase I, which produces 30 million standard cubic feet per day, began service in January.
ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) has proposed its own expansion in the same area of North Dakota, although its plans remain in the planning phase. The $50 million Train 2 addition at the Bear Creek Cryogenic Processing Plant near Kildeer would boost output from 80 million to 175 million standard cubic feet per day. For more information, see Industrial Info's project report.
Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) is in the early design stages for the extensions of two sections of its Centennial Pipeline, which carries NGL from Texas to central Illinois: a $90 million extension in Indiana and a $60 million extension in Illinois. The additional 150 miles of line would transport 60,000 barrels per day (BBL/d) of propane and 170,000 BBL/d of ethane from Seymour, Indiana, to Dieterich, Illinois. For more information, see Industrial Info's project reports on the Indiana and Illinois segments.
Kinder Morgan Incorporated (NYSE:KMI) (Houston) is overhauling two sections of its Tennessee Gas Pipeline System to carry Y-grade NGL, as opposed to the current natural gas. The $250 million Kentucky and $155 million Ohio abandonment and conversion projects for the Utica Marcellus Texas Pipeline will alter 85 and 125 miles of line, respectively, to host 235,000 BBL/d of NGL capacity. The two segments will run from Greenup, Kentucky, to Columbiana County, Ohio. For more information, see Industrial Info's reports on the Kentucky and Ohio segments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing NGL-related project kickoffs in the Midwest and Great Lakes regions for the remainder of the year, by state.The U.S. Midwest region includes Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota and South Dakota. The Great Lakes region includes Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin.
Among the biggest developers in the two regions is Mountaineer NGL Storage LLC (Littleton, Colorado), which is seeking permits for more than $2.5 billion in NGL storage projects in Ohio. This includes the $300 million storage cavern complex near Clarington, Ohio, which would include four caverns, each 6,300 to 6,700 feet below ground, with a total capacity of 2 million barrels of NGL sourced from the Utica Shale. Construction would include a truck and rail load-out facility with the potential for future pipeline and river-barge transport.
Developers and supportive legislators hope Mountaineer NGL and similar storage projects will bring the U.S. petrochemical industry back to the Appalachian area. At the recent Appalachian Storage Hub Conference in Ohio, a company official said Mountaineer NGL already has been spent $20 million on the permitting process for the Clarington hub, according to Ohio's Observer-Reporter. For more information, see Industrial Info's project report.
North Dakota's Bakken Shale has been a bonanza for natural gas and NGL producers, and Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) took part in it earlier this year when it kicked off construction on the $125 million Bear Den Phase II expansion in Watford City. The expansion will increase processing capacity to about 170 million standard cubic feet per day and is expected to go into service in the third quarter of 2019. For more information, see Industrial Info's project report.
Earlier this year, the North Dakota Public Service Commission (PSC) approved siting permits for Bear Den Phase II, which the PSC says will reduce natural gas flaring and improve safety in the western oil and gas producing region of the state, according to North American Shale magazine. "[Bear Den Phase II] will mean less truck traffic, less flaring, improved safety... and enhanced energy independence for America," said Randy Christmann, PSC chairman, according to the magazine. Phase I, which produces 30 million standard cubic feet per day, began service in January.
ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) has proposed its own expansion in the same area of North Dakota, although its plans remain in the planning phase. The $50 million Train 2 addition at the Bear Creek Cryogenic Processing Plant near Kildeer would boost output from 80 million to 175 million standard cubic feet per day. For more information, see Industrial Info's project report.
Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) is in the early design stages for the extensions of two sections of its Centennial Pipeline, which carries NGL from Texas to central Illinois: a $90 million extension in Indiana and a $60 million extension in Illinois. The additional 150 miles of line would transport 60,000 barrels per day (BBL/d) of propane and 170,000 BBL/d of ethane from Seymour, Indiana, to Dieterich, Illinois. For more information, see Industrial Info's project reports on the Indiana and Illinois segments.
Kinder Morgan Incorporated (NYSE:KMI) (Houston) is overhauling two sections of its Tennessee Gas Pipeline System to carry Y-grade NGL, as opposed to the current natural gas. The $250 million Kentucky and $155 million Ohio abandonment and conversion projects for the Utica Marcellus Texas Pipeline will alter 85 and 125 miles of line, respectively, to host 235,000 BBL/d of NGL capacity. The two segments will run from Greenup, Kentucky, to Columbiana County, Ohio. For more information, see Industrial Info's reports on the Kentucky and Ohio segments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
