Stranglehold - Would the Marcellus/Utica Benefit from In-region Ethane Storage?
Every day, the “wet” Marcellus and Utica shale plays are producing significant volumes of ethane, all of which needs to be moved out of regional plants, fractionators and de-ethanizers immediately, either by “rejection” into natural gas or on pipelines to the Gulf Coast, Ontario, or to an export terminal in Marcus Hook, PA. A leading midstream company—MPLX’s MarkWest subsidiary—has developed an ingenious, integrated approach for handling much of that ethane (and dealing with any disruptions), but its ethane-management system is not a regional cure-all, and the likely development of an ethylene plant in the heart of the Marcellus/Utica would only increase the region’s ethane-handling needs. Today, we continue our examination of natural gas liquids (NGL) storage needs in the Northeast with a look at how nearby ethane storage might help midstream companies that are not integral parts of MarkWest’s “ethane loop.”