Oklahoma-based Chesapeake Energy Corp, announced today that it will work through a subsidiary and two partners to build new facilities worth $900 million in eastern Ohio to process natural gas and natural gas liquids like ethane, butane and propane.
The natural gas-processing plant would be built in Columbiana County and have an initial capacity of 600 million cubic feet per day. It would be a state-of-the-art cryogenic processing facility.
The natural gas liquids would be delivered to a central hub complex in Harrison County that will feature a storage facility with a capacity of 870,000 42-gallon barrels and fractionation capacity of 90,000 barrels per day. The facility would include a significant rail-loading facility.
The two plants would create "hundreds of high-quality, well-paying new jobs for Ohioans," one official said.
The partners in the deal for the needed infrastructure to process natural gas and the lucrative liquids are Chesapeake Midstream Development LP, M3 Midstream LLC and EV Energy Partners.
The French energy company Total E&P USA has an option to join in the deal.
It had earlier joined with Chesapeake and Texas-based EnerVest Ltd. and owns a share of the Utica holdings in eastern Ohio.
Chesapeake called the two-county complex the largest integrated midstream service complex in eastern Ohio.
The Columbiana County plant's cryogenic and fractionation facilities could be in operation in the second q1uarter of 2013. Engineering and procurement are already under way.
No specific locations were announced for the two plants in the two-page announcement. Local reports say the Columbiana County plant will be near Hanoverton.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
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Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
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