Ohio, Pennsylvania and West Virginia are combining efforts to develop natural gas liquids storage that is needed if ethane crackers are to be developed in the Appalachian Basin, according to Kallanish Energy.
Currently, Shell is building one cracker in Beaver County, Pennsylvania. Additionally, Thailand-based PTT Global Chemical is considering building a second cracker in Ohio’s Belmont County.
The trio of states is seeking U.S. Department of Energy loans and private equity funding to build the $2.5 billion facility to store eight to 10 million barrels of NGLs. The project would be funded mainly by loans — about 60 percent — and private funding would pay for the remainder.