28 February 2011 15:15 [Source: ICIS news]
HOUSTON (ICIS)--PPG Industries plans to lease property at its Natrium chemicals site in West Virginia for the development of Marcellus Shale natural gas, the US coatings and specialty products producer said on Monday.
“PPG estimates the net present value of the future before-tax cash flows generated by this lease will total approximately $50m [€37m] over the life of the anticipated well development, which is estimated to be over 30 years,” the company said. “This includes an initial cash payment of approximately $10m.”
Gastar chief executive Russell Porter said, “Along with our existing leasehold in Marshall and Wetzel counties, these leases help Gastar create a large, contiguous block of acreage that can be efficiently and profitably developed for the benefit of PPG’s and Gastar’s shareholders.”
US pipeline operator Dominion said on 12 January it reached an agreement on an option for land at PPG's Natrium site to process natural gas from the Marcellus field.
PPG's Natrium chlor-alkali and derivatives plant produces chlorine, caustic soda, muriatic acid and calcium hypochlorite.
($1 = €0.73)
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