Analyst: Northeast NGL Supply/Demand at ‘Crossroads’

10 Sep 2016   Shale Gas

Proposed Appalachian Storage Hub might incentivize region’s ethane recovery, petrochemicals investment, says S&P Global Platts analyst. Earlier this week, Rigzone presented an article featuring the perspectives of two prominent supporters of developing a $10 billion natural gas liquids (NGL) storage and distribution system in West Virginia, Ohio, Pennsylvania or Kentucky. The proposed Appalachian Storage Hub project would provide a regional home for ethane and possibly other NGL produced in the Marcellus, Utica and Rogersville shale plays and support growth in petrochemicals manufacturing – and job creation – in the four-state area, the hub advocates said. The project would also pose “an interesting question for NGL markets,” says one informed observer. “While there is little demand for the storage hub currently, it could incentivize petrochemicals firms to site projects in the region, depending further on continued supply from wet gas production in the area,” said Andrew Neal, NGL analyst with […]

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