The Gulf Coast is no longer the place to be in North America for energy investment. In recent years, energy investors have recognized the greater profitability potential of Ohio’s shale plays. A portion of the Ohio Southeast region sites atop much of the Utica and Marcellus shale formations, which have accounted for 85 percent of U.S. shale gas production growth since 2012. These shale plays contain large amounts of natural gas, natural gas liquids and crude oils.

A recent study from IHS Markit estimates that by 2040, nearly half of all U.S. natural gas production will come from the Ohio Valley. Combined with a deregulated energy market allowing for low-cost electricity, the availability of these plentiful and low-cost feedstocks make Ohio Southeast the best option for midstream and downstream investment This is part of the reason why Ohio has seen over $90 billion in upstream, midstream and downstream private investment from 2011 through the first half of 2020.

The only thing better than having the lowest natural gas prices in the developed world is having them in proximity to customers. The Ohio Southeast region sits within a day’s drive of 50 percent of North America’s high-demand markets and 70 percent of polyethylene demand. Just as important as being close to markets, Ohio Southeast is far removed from the damaging and costly effects of repeated storms and dramatic flooding.

Eastern Ohio is a prime location for manufacturers, energy producers and petrochemical companies that consume natural gas or natural gas liquids for fuel or feedstock. Every part of the energy chain is represented in our region. This means companies that choose Ohio Southeast gain the advantage that comes with having an accessible, affordable and sustainable source of natural gas and NGLs. One of the primary NGLs that is being produced in mass quantities is ethane, the major building block for polyethylene, which is the foundation for making plastics that go in to nearly every product used today.

The availability of ethane is one reason why PTTGCA/Daelim is looking at taking the final steps to invest more than $8 billion in Eastern Ohio for the construction of an ethane cracker. PPTGCA/Daelim owns a 500-acre site on the Ohio River in Belmont County and has moved forward with site preparation. A final investment decision on the cracker construction is due soon.

Due to shale gas growth in recent years, the OhioSE region is home to over 3300 permitted wells with 2800 drilled and 2500 producing. View map.