Dominion options PPG West Virginia site for NGL facility

12 January 2011 18:26  [Source: ICIS news]

HOUSTON (ICIS)--US pipeline operator Dominion said on Wednesday  it plans to buy land in West Virginia from PPG Industries for a plant to process natural gas from the Marcellus shale field.

The company said it reached an agreement on an option for land at PPG’s Natrium site, near the West Virginia-Ohio border.

Financial terms were not disclosed, and PPG did not immediately respond to a request for comment.

PPG has a plant at the site that produces chlorine, calcium hypochlorite, muriatic acid and caustic soda.

The 56-acre site in Natrium is close to a transmission line that Dominion said it planned to convert into a wet gas service line.

The company said the planned facility would process up to 300,000,000 cubic feet/day of natural gas, adding that fractionation capacity for up to 38,000 bbl/day of natural gas liquids (NGLs) also would be available.

The site is close to railroad, pipeline and barging services for NGLs, the company said.

NGLs, particularly ethane, are key feedstocks for US petrochemicals, accounting for an estimated 80% of the feeds used to make ethylene.

US shale gas deposits, such as the Marcellus formation, are said to hold significant amounts of ethane, the production of which is expected to grow by 30% in the next two years.

The US currently produces an estimated 850,000 bbl/day of ethane.

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By: William Lemos
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