Posted on 08/26/2014 12:37:51 PM PDT by thackney
Appalachian Resins, Inc. (AR) plans to lease approximately 50 acres of land in Salem Township, Ohio, to build an integrated 600 million pound per year ethylene/polyethylene production facility, the Houston-based firm announced in an emailed statement to DownstreamToday.
"There is no difference in our development activities, we have essentially only moved across the Ohio River," James Cutler, AR's CEO, said Sunday after announcing his company's signing of a land lease letter of intent with the Monroe County (Ohio) Port Authority. "We will not be integrating with an existing operating (brownfield) facility but will be more of a 'greenfield' location. However, we will have improved rail facilities."
As a 2013 article in DownstreamToday indicates, AR initially planned to build its ethylene/polyethylene plant in West Virginia using natural gas liquids produced from the nearby Marcellus and Utica shale formations. The company decided to move its proposed "less than world-scale" plant, which is designed to serve a regional market, to the Ohio site "for business and commercial reasons and to accommodate a larger production facility," Cutler said Sunday. The West Virginia site only has space for a 500 million pound per year facility, he explained.
The approximately $1 billion integrated Ohio facility will be able to process approximately 18,000 barrels per day of ethane into ethylene and polyethylene and will easily tie into the region's pipeline and storage network, Cutler continued.
"The AR less than world-scale business model, besides fitting into the existing Marcellus fairway infrastructure, supports polyethylene supply chain resiliency," said the CEO. The facility's size "makes Marcellus feedstock logistics easier" and "reduces environmental issues," he added.
Moreover, the fact that the facility's $600 million ethylene plant can operate as a master limited partnership (MLP) should appeal to investors, said Cutler.
"The financial operating characteristics of the ethylene plant would be similar to that of a midstream pipeline," he explained. "That is, a constant cash flow. Ethane comes in and ethylene goes out. The ethylene plant, for all practical purposes, operates on a 'tariff' basis, just like a pipeline."
The facility's $400 million polyethylene plant, however, cannot qualify as an MLP, added Cutler. "The polyethylene plant will purchase its ethylene requirements, under long-term contract, from the ethylene plant. The polyethylene plant will market its output to an off-taker under long-term contract."
AR expects its ethylene/polyethylene complex to go on-stream in early 2019.
Salem, Ohio ping
What? The crackers in Ohio gettin’ uppity?.....................
Sounds racist to me ...
They’ve tried building ethany honkies, but the noise from the horns makes it unbearable to work there.
LOL.
Thank you, Mr. Thackney. We are about 11 miles south of Salem, though. There is
a lot of fracking going on around here, but the PTB aren’t making it easy on anyone.
This is very interesting, though. It would be nice to get the envirowackos to remove
their weenies from our soup, but that is probably not going to happen.
Too bad about the coal. When we get a chance to get our country back, maybe we
can fire up the coal mining and processing again.
NE Ohio coal was my family history. I am the oldest grandson of my father’s father not to actually work in a coal mine.
I did play in them as a child, got to drive a grandpa’s dragline and dad’s bulldozer. The strip mines were a motorcycle climbing heaven.
Natural gas liquids......
Term for hydrocarbons heavier than methane
What are natural gas liquids and how are they used?
http://www.eia.gov/todayinenergy/detail.cfm?id=5930
That’s really interesting. Do you know if anyone in the industry is planning/working
on getting past 0bola, his pen, his phone, and his JBTs to get coal back online again?
Dude has done some critical damage to our country and our economy. It’s going to
take a few minutes to undo all he destroyed and get ourselves back on track again.
What kind of cracker?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.