Over 100 Utica Shale Related Projects Taking Place in Ohio Worth Over $18 Billion
Bricker and Eckler, an Ohio based law firm, has released their spring 2014 Shale Economic Development Overview. The report found there are over 100 shale related projects taking place in Ohio creating billions of dollars in investment outside of the wells being developed by the oil and gas companies. While many of the projects take place in eastern Ohio, the report found significant oil and gas induced investments are taking place across 25 counties in Ohio.
To date, Bricker and Eckler has estimated over $18 billion in investment has been constructed or announced in Ohio. The amount of investment for the remaining 40% of the projects remains unknown at this time, but is expected to be in the millions.
There are currently 8 total projects taking place in Ohio that have invested over a billion dollars in the region. The majority of these projects are within the midstream sector of the oil and gas industry to process and transport the liquids rich natural gas coming out of the Utica.
- Utica East Ohio Midstream LLC has invested $1.2 billion by building a cryogenic plant in Kensington, a fractionation facility in Scio, 60 miles of pipeline and plans to construct another cryogenic facility in Carroll County.
- MarkWest Energy Partners has invested over $1.5 billion constructing two cryogenic processing plants and a fractionator plant in Harrison County as well as multiple cryogenic plants in Noble County.
- Blue Racer Midstream, a joint venture between Dominion Resources Inc. and Caiman Energy III LLC, have invested 1.5 billion in the Utica providing midstream services including gathering, processing, fractionation and natural gas liquids transportation and marketing to Chesapeake Energy, Eclipse Resources, Hess Corp., Total Gas & Power North America, Rex Energy and EnerVest
- Bluegrass Pipeline, a project by Williams Cos. Inc. and Boardwalk Pipeline Partners LP has invested $1.5 billion in a pipeline to transport natural gas liquids from the Marcellus and Utica to the petrochemical market in the gulf region.
- Enterprise Products Partners, building the ATEX pipeline, have invested over a billion dollars in building a 1,230 mile ethane pipeline from Pennsylvania to Texas. 265 miles of which will run through Butler, Clinton, Coshocton, Fairfield, Fayette, Greene, Harrison, Jefferson, Licking, Muskingum, Pickaway, Tuscarawas and Warren counties in Ohio.
In addition to these midstream projects, Vallourec Star has invested $1.2 billion to build a seamless pipe mill in the Mahoning valley where they manufacture threaded tubing for the oil and gas industry. Currently Vallourec Star is looking to expand their operations by building an $81.6 million steel pipe threading plant near the tubing facility creating even more jobs for the valley.
The remaining investments range from electric generation projects to hotel development to oil and gas workforce training thanks to shale development in eastern Ohio. Utica Shale development is helping transform eastern Ohio into an economic powerhouse. While those opposed to oil and gas development believe investment only take place at the wellhead, it is clear to see from this report the positive economic impacts from domestic oil and gas development are substantial and widespread.