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Friday, September 20, 2013

Blue Racer Ponders Cryogenic Processing Plant Construction in Mahoning County

From Business Journal Daily:
Within the next year, Blue Racer Midstream should know whether a business case exists to construct a new cryogenic processing plant in Petersburg, Breon reports. The general site in southeastern Mahoning County is less than 10 miles from where a $150 million processing plant operated by Pennant Midstream LLC, a joint venture between NiSource Transmission and Hilcorp Energy Co., is under construction in Springfield Township.
The Pennant Midstream plant, as well as M3 Midstream’s larger scale complex that recently came online in Kensington, Columbiana County, separates “dry” gas from “wet” gas that is piped from wells in the region. The dry gas – in this case, methane – is transmitted to lines such as Dominion’s. The natural gas liquids are then sent to fractionation plants that separate it into products used to make ethane, propane and butane.
“There’s a reason why NiSource looked at [southeast Mahoning County.] There’s a reason we’re looking at it. There’s a reason Williams has announced looking at something here as well,” Breon says.
Methane gas leftover after liquid hydrocarbons are extracted also needs somewhere to go, and the Petersburg site offers two or three pipeline outlets that producers can tie into. “It gives them options,” he says.
Ultimately, a decision on the Petersburg plant depends on whether Blue Racer can secure enough producer contracts in northeastern Ohio and northwestern Pennsylvania to warrant such a huge investment, Breon says.
Read the whole article here. 

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