Appalachian Storage Hub is only about ethane?
Tom Gellrich TopLine Analytics
Most of the discussion around Appalachian Store Hub has focused on ethane. That is entirely logical, as ethane is the raw material for ethane crackers – producing ethylene the largest volume chemical produced. Ethane storage would make the region more attractive to other companies beyond Shell and PTTGC for multi-billion dollar ethane cracker investments.
There is also the need to store the other NGLs such as propane or butane. Like ethane, these are the raw materials for petrochemical production. A propane dehydrogenation (PDH) plant would produce propylene the second largest volume chemical. While a PDH plant is not as large as an ethane cracker it is still a multi-billion dollar investment. Propylene like ethylene is a building block chemical with many uses.
We can look at other petrochemical production centers like the US Gulf Coast or Singapore for what other products are stored and transported. These products are in addition to ethane, ethylene, propane, propylene and butane. They include methane, hydrogen, oxygen, nitrogen, carbon monoxide, methanol, and ammonia. These are all ‘building block” chemicals on which the industry constructs ever more complex and useful products.
Will all of these be incorporated into the Appalachian Storage Hub? That remains for the market to determine in the coming years. There is certainly ample precedent in other petrochemical centers beyond just ethane storage.
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.