Marathon Petroleum Company

While Energy Information Administration (EIA) estimates of crude-by-barge traffic between the Midwest and the Gulf Coast have fallen sharply in the past 18 months, shipments down the Ohio River to Texas and Louisiana refineries have increased threefold – peaking at just under 70 Mb/d in May 2015. Growing barge shipments have been accompanied by midstream investment in barge dock facilities – especially in Ohio. Today we discuss increased shipments of ultra light crude condensate to Gulf Coast refineries on the Ohio River.

According to the Energy Information Administration (EIA), liquids production from the Utica shale in Ohio (identified as crude oil but more likely all lease condensate) has more than trebled since January 2014 from 19 Mb/d to a projected 64 Mb/d in May 2015. Regional production of plant condensate from natural gas processing has also increased with the build out of gas processing capacity in the Utica and nearby Marcellus plays and could reach 50 Mb/d by the end of 2015. Midstream companies have been busy developing infrastructure to get this condensate to market. Today we look at developing infrastructure and markets for Utica condensate.