The Ohio Southeast region is home to an abundance of low cost natural gas and natural gas liquids for energy and chemical feedstocks.
The Marcellus & Utica Shales overlap in Pennsylvania, eastern Ohio, and West Virginia and combine to create the largest gas producing formation in the USA. By 2030, Appalachia will supply about 40% of the North American Market. Production levels are expected to be 55 Bcf/d by that time. Sources: McKinsey Energy Insights & U.S. Energy Information Administration
The Marcellus & Utica shales also produce about a million barrels per day of natural gas liquids (NGLs) that are produced with the gas.
These NGLs, such as ethane, propane and butane, are used to make common chemical building blocks, plastics, adhesives, coatings, and fuel additives. These abundant feedstocks are available at low costs because they don’t have to be shipped long distances in interstate pipelines.
Ohio Cost Advantage vs. U.S. Gulf Coast for Petrochemical ProductionWhen delivered into OH, PA, WV Market
A study by IHS Insight found polyethylene production in the Ohio-Pennsylvania-West Virginia region could result in 4X better earnings based upon cheaper feedstock and lower freight costs of the end product since 70% percent of the U.S. market for polyethylene is within a day’s drive of the tri-state area. Learn more at Shale Cresent USA.