Chemical Intermediates, what is the relationship to an Appalachian Storage Hub?
Tom Gellrich TopLine Analytics
The regional focus has been on attracting large global scale ethane crackers Shell and PTTGC, which is understandable considering the $5+ billion investment in one plant. These ethane crackers, convert ethane into ethylene and in a separate step polymerize ethylene into polyethylene, the final product shipped to plastics processors.
Ethylene, the chemical intermediate in these plants is also a useful intermediate to produce a number of other chemical products, outlined in the graphic.
As we have seen in the US Gulf Coast and other others with a high concentration of petrochemical investment a win-win cycle is created.
This results in two new investments, the increase in cracker capacity to produce ethylene and the new ethylene consuming plant. The investment in these ethylene-consuming plants can vary from quarter of a billion dollars to several billion for world scale units. Since the region has the lowest ethane costs globally, and local demand for these downstream ethylene based products it is easy to understand why these investments are attractive.
A storage hub with ethylene storage is a key component in attracting more of these downstream ethylene consumers. It reduces risk, by allowing them to draw from a large pooled inventory, which minimizes impact if one ethylene plant has production issues. Similarly, it provides a buffer for the ethylene producers from one of the ethylene consumers having production issues. Unforeseen production issues are just one event; there are also scheduled shutdowns for normal maintenance, inspection, or expansion efforts.
Find out more at the 3rd Annual Appalachian Storage Conference. MPLX LP, which recently announced it is evaluating underground NGL storage caverns at its Hopedale, Harrison County Ohio complex, will be one of the speakers at the third Annual Appalachian Storage Hub Conference. Mountaineer Storage will be updating the audience about its storage hub in Monroe County near Clarington, Ohio.
You cannot afford to miss this opportunity to learn exactly what these two companies are planning. There is much more including the DOE expanding on their November 2018 report, loan guarantee, and the April 10th Executive Order.
Appalachian Storage Conference III
June 6, 2019
Hilton Garden Inn
Southpointe, Canonsburg, PA
Why you need to attend:
The Appalachian Storage Hub Conference is the only conference focused exclusively on the THE regional economic infrastructure platform of the decade. Shape the future and establish relationships with those driving this mega project.
Seating will be limited. Don’t wait to register.