The economic reach of the Utica shale boom in eastern Ohio is extending into the Youngstown area with the location of a natural gas processing plant in New Middletown, OH. The Hickory Bend Cryogenic Processing Plant is an estimated $375 million investment and a significant step in the development of the Utica shale – and a boost to the local economy. The construction of the plant supported about 500 jobs in Springfield Township. The plant is set to begin production in December. The Lisbon Morning Journal has more below:
“Gov. John Kasich assisted officials of Pennant Midstream, a joint venture between NiSource Midstream Services and Harvest Pipeline, with a symbolic ribbon-cutting.
Harvest Pipeline is an affiliate of Hilcorp Energy Co.
More than 100 people, including state, county and township officials, attended the dedication.
The plant separates dry gas from natural liquid gas (NLGs) and is expected to begin shipping the first of its 200 million cubic feet per day capability to the M3 Momentum fractionation plant in Kensington in December.
The Kensington plant in Columbiana County is 38 miles from the Hickory Bend plant, and will forward its products to a plant in Harrison County.
The Hickory Bend natural gas gathering pipeline system extends through northeastern Ohio and western Pennsylvania and represents a $375 million initial investment in the region.
Robert C. Skaggs, president and CEO of NiSource, said the Hickory Bend system employs more than 2,000 people and will invest billions in the region.
“This will be the fountainhead of energy in Ohio,” he said while thanking Hilcorp for its backing and many local officials for welcoming and helping the joint venture.
“You’ve made it good to be here,” Skaggs said and lauded Kasich as one of the most vocal believers and supporters.
Skaggs called Kasich, “The real deal.”
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The early concern was on whether they were going to hire Ohioans, Kasich said, but quickly noted NiSource has made a commitment to hire from within the state and is in the process of training now.
The Hickory Bend plant has supported about 500 construction jobs.
Carlton Ingram, business manager for Local 66, said there was no greater example of economic development than being an associate on the pipeline.
Local educators are involved with training future employees and in light of the scope and range of the Utica and Marcellus shale plays “adjacent technologies” must be identified for diversification … so if a torpedo hits one part there are others left, Kasich said.
“Manufacturing is beginning to think about how to take advantage of it so everything seems to fit. We just need to take advantage of it.
“Everything I hear, the deposits we have in Ohio are good,” Kasich said, adding, “the roll-out was a little slow partly due to (shale) formations. Basically wet gas with dry gas … and basically separating the wet from the dry gas. The challenge in the oil industry is making the oil flow.”
Springfield Township Trustee Robert Orr said the message is there is hope that greater days are ahead and David Mustine, managing director of energy, polymers and chemicals for JobsOhio, said the plant was “very important for the development of the Utica.”
“We’re your long-term partner,” Mustine said.”
Read the entire article here.