PTTGCA, the US subsidiary of Thai company PTT Global Chemical, has signed a precedent agreement with Energy Storage Ventures subsidiary Mountaineer NGL Storage, to develop a natural gas liquids (NGL) storage facility in Monroe County, Ohio, US.
The facility, at a 200 acre (81 ha) underground salt cavern site owned and operated by Mountaineer, will be the first underground storage facility in the Marcellus and Utica shale formations. It will provide storage and transport services for PTTGCA’s petrochemical complex in Dilles Bottom, Ohio Valley, about 13 km away. Mountaineer will work with PTTGCA to develop storage for 1 million bbl of ethane and a pipeline to link it to PTTGCA’s petrochemical complex.
‘Ethane storage and transportation will be a crucial element of a world-scale petrochemical complex. Mountaineer NGL Storage will provide essential infrastructure and capabilities to our project. Our impending partnership with this first-rate organisation brings us one step closer to a final investment decision,’ says PTTGCA President and CEO Toasaporn Boonyapipat.
Mountaineer CEO David Hooker says that his company was pleased to partner with PTTGCA in developing its petrochemical complex.
‘Our storage facility will have an important role in managing the plant’s supply portfolio, along with offering PTTGCA and other prospective customers an option to manage seasonal and operational demand with competitive locally priced production. The PTTGCA team has been great to work with, and we look forward to a long and successful relationship,’ he adds.
Mountaineer is planning two phases of development at the US$250 million facility, during which it will create multiple caverns in the existing salt formation, each capable of storing 500,000 bbl of NGL including propane, butane, ethane and ethylene. Both phases will store 1.5 million bbl and take 2-3 years to complete.