Mountaineer NGL Storage announced Thursday it intends to invest $150 million over the next three to five years in its natural gas liquids storage facility at Clarington, Ohio, Kallanish Energy reports.
That investment could top $500 million in private capital investment depending on market demand, the Denver-based company said.
That $150 million investment could expand the facility to handle up to 10 million barrels (MMBbl) of liquids, including ethane from shale drilling, according to previous statements by company officials.
The facility on the Ohio River in eastern Ohio was being designed to initially store up to 3.25 MMBbl of natural gas liquids from the Utica and Marcellus shales in Ohio, West Virginia and Pennsylvania.
To date, Mountaineer NGL Storage had invested $20 million in the Monroe County project.
“We think our investment will encourage significant additional NGL infrastructure support in the region as well,” said David Hooker, managing director of the company, in a statement.
“We’re pleased to see that the support of this regional effort is as strong as it is, and we believe that the Mountaineer NGL Storage project highlights how the private sector can take steps to address critical storage solutions for the burgeoning petrochemical industry,” he said.
Last summer, Mountaineer conducted a non-binding open season to judge interest in the storage facility and interest was high, according to Hooker.
Such a facility and other facilities like it in the Ohio River Valley could benefit ethane cracker plants like the one Shell Appalachia intends to build in Beaver County, Pa., and one Thailand-based PTT Global Chemical may build in Belmont County, Ohio.
Winning all the needed state permits will likely take until mid-2018, Hooker said.
The company intends to use the Salina salt at a depth of about 6,800 feet for its facility. The salt is about 130 feet thick at that level.