Wednesday, June 8, 2011

Ethane Transportation: One Piece to Cracker Puzzle

The transportation subcommittee of the Governor’s Marcellus to Manufacturing Task Force met Wednesday, June 8, 2011 to discuss transportation infrastructure in regard to moving ethane from drilling locations to potential cracker plant locations in West Virginia.

Will West Virginia get an ethane cracker plant? While more than one possible plant is rumored, it was said at today’s meeting, “The Marcellus in West Virginia could definitely support one world class cracker plant.”

The existing infrastructure of NiSource, Dominion, EQT, and Caiman Energy’s pipelines was discussed in relation to how capable they are in transporting ethane or ethylene throughout the state.

Infrastructure needed to transport ethane and ethylene could include pipelines that would run from Hastings to Kanawha County, specifically Institute. Possible cracker plant locations mentioned in recent published reports include Institute and New Martinsville. Bob Orndorff, of Dominion, predicted that it would take approximately one year to build the necessary pipeline from Hastings to Institute.

Once the ethane is at a cracker plant, storage becomes the next issue, as Jim Crews pointed out. Mr. Crews, of NiSource, also serves as President of the West Virginia Oil and Natural Gas Association (WVONGA).

Besides Crews and Orndorff, Task force members at the table included Kurt Dettinger, Governor Tomblin’s General Counsel, Patrick Donovan, Executive Director of the West Virginia Public Port Authority, Don Garvin, Legislative Coordinator at the West Virginia Environmental Council and Jack Lafield, President and CEO of Caiman Energy.

In addition to pipeline transportation, Patrick Donovan noted that rail and barge could be an option for both the Wetzel and Kanawha County locations. The committee determined that maps of current transportation infrastructure of both the natural gas companies and the transportation sector must be merged in order to better predict which location would be most beneficial.

Discussions on securing a cracker are in their infancy. But bringing these players to the table to work out the transportation piece of the puzzle is important to see this potential economic boon come to fruition for the state.

Tuesday, June 7, 2011

Morgantown: Don’t Send the Wrong Message

Tonight, Morgantown City Council will vote whether to pass an ordinance that will ban Hydraulic fracturing, or fracking, within its city limits. Yesterday, Shell announced it will build a world-class cracker plant in the Appalachian Basin, probably either West Virginia or Pennsylvania. Also yesterday, New York’s General Assembly extended its ban on fracking for another year.

Drilling in the Marcellus can be a game changer for West Virginia. A cracker is estimated to create thousands of new, high paying jobs. Drilling alone will create 7,500 new jobs for North Central West Virginia over the next several years.

Drilling and hydraulic fracturing of wells has been conducted in the state for decades. Some people think that because the Legislature failed to pass a bill to more specifically regulate horizontal drilling and hydraulic fracturing in the Marcellus Shale formation that no regulation exists. Nothing could be further from the truth. The drilling and hydraulic fracturing processes are heavily regulated right now in West Virginia.

Yesterday, New York’s General Assembly said no to thousands of new jobs for the state when it failed to consider the facts and science and extended its statewide moratorium on drilling.

Morgantown leaders should consider the facts and science. If they do so, they are saying yes to one of the greatest game changers ever for West Virginia’s economy.