Genesee & Wyoming Inc. announced today that its wholly owned subsidiary, the Columbus & Ohio River Rail Road Co., has signed a long-term agreement to haul natural gas liquids from a new fractionation hub in Ohio's Harrison County.
The rail agreement was signed with Utica East Ohio Midstream LLC. It is a partnership with Chesapeake Energy and two other companies: M3 Midstream LLC (Momentum) and EV Energy Partners, both based in Texas.
Chesapeake Energy is selling off its interest to Global Infrastructure Partners for $2 billion, but that deal has not yet closed.
Utica East Midstream is building a $900 million complex: a natural gas processing plant in Kensington in Columbiana County and a fractionation plant to separate natural gas liquids in Scio in Harrison County. They will be conected by pipelines.
The railroad will construct a new 1-mile rail siding and rehabilitate a 3-mile storage track.
Plans call for shipping 10,000 carloads of natural gas liquids from Scio annually.
Until the Scio plant opens in May, the new operation will benefit from a recent $2 million expansion of the railroad's main rail yard in Newark.
That was funded by a public-private partenrship between the railroad and ther state of Ohio.
The Newark expansion will facilitate the sorting of 100,000 rail cars per year for more than 80 customers and will serve several proposed Utica shale projects along the rail line, officials said..
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.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.