Ohio lacks midstream infrastructure to get Utica gas to markets
Thursday, July 30, 2015
Crain’s Cleveland reports a lack of pipelines in Ohio has impacted drillers in the Utica Shale.
In mid-July, the price of Utica gas in Ohio was $1.12 per million cubic feet. The price of ethane is low just like natural gas, so production of the gas costs more than the gas is worth. One feature of Utica Shale gas is that it is made up of mostly ethane and other natural gas liquids. This has turned out to be a downfall for the play, though. Shale drillers have to pay to remove ethane and liquids from the dry gas before it can be transported via pipeline.
For now, the price of gas will not improve until the needed infrastructure is built to get the gas to new markets.
Via: Crain’s Cleveland > Weak gas infrastructure fueling Utica’s struggles
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