Columbiana County Set to be Site of $900 Million Plant

In an exciting development for the state economy and Columbiana County in particular, Chesapeake Energy has announced plans to partner with M3 Midstream and EV Energy Partners to build a $900 million natural gas processing plant in the area.

According to The Columbus Dispatch, no employment estimates were available at this time.  However, it will clearly provide more job opportunities for Ohioans.

Jerry James, president of the Ohio Oil and Gas Association, said the plant would be the largest of its type in the state.  "I'm happy they're locating it in Ohio and will employ Ohioans," he said.  More after the jump...

His sentiments were similar to those expressed by Rob Nichols, spokesman for Governor John Kasich, who said the announcement is "great news for the people of eastern Ohio, and we're glad that Chesapeake continues to find Ohio the right place to do business."

The processing complex will provide support to companies extracting natural gas and natural gas liquids from Ohio's Utica shale by gathering, compressing, and processing natural gas.  $900 million will be invested in the project over a 5-year span.  The development will be a "critically important link in the...chain for the rapidly developing Utica shale" according to Mike Stice, president of Chesapeake Midstream Development.

Parts of the complex should be operational by June 2013, and will have an initial capacity of 600 million cubic feet of gas per day.

Chesapeake and its affiliates will own 59 percent of the project;  M3 will own 33 percent;  and EV Energy Partners will own 8 percent.

Further details will be released in the coming months.  What do you think of this project?  Share your comments here or at the forum!

Read Chesapeake's news release here.

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