Bayer’s ‘Ethane Cracker’ Idea May Mean Jobs

Wheeling WV  Intelligencer
16 February 2011
By Casey Junkins

WHEELING - Hundreds of new jobs could be on the way to the Ohio Valley if Bayer Corp. successfully attracts a "cracker" plant to process the ethane found in Marcellus Shale.

"Bayer wants an ethane cracker ... I think they see the opportunity and potential this area holds for such a facility," said Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership. "This could possibly bring hundreds of jobs."

Tuesday, Acting Gov. Earl Ray Tomblin announced the formation of the "Marcellus to Manufacturing Task Force," a body whose goal is to "research and develop potential economic development opportunities related to Marcellus Shale and natural gas byproducts such as ethane and ethylene."

One task force member is Greg Babe, president and chief executive officer of Bayer Corp.

Company spokesman Bryan Iams said Bayer has property adjacent to its New Martinsville facility that he believes would be a good place for an ethane cracker.

"We are a user of natural gas to run our facilities, and use it to develop our products," Iams said. "We are very optimistic that there is an opportunity for this."

Ethane is one of the prevalent natural gas liquids - along with propane, butane, and pentanes - found in the "wet" Marcellus Shale gas found in Northern West Virginia. The website naturalgas.org, notes, "Natural gas processing consists of separating all of the various hydrocarbons and fluids from the pure natural gas, to produce what is known as 'pipeline quality' dry natural gas."

The liquids are the resulting byproducts, and the cracking action involves further processing of the ethane.

Iams - also noting the plant could bring "hundreds of jobs" - said Bayer is also considering its Institute site in Kanawha County for a possible ethane cracker, noting, "Both sites have acreage we believe would be ideal for an ethane cracker."

"Both sites have highway systems nearby and river access," he added.

Rigby also noted the "wet" gas found in the local area filled with ethane makes West Virginia's Northern Panhandle attractive to potential developers of the cracker plant.

In assigning his task force Tuesday, Tomblin said, "The environmentally responsible manner in which the extraction of natural gas from Marcellus Shale occurs will bring countless jobs to West Virginia. In addition, if we can feasibly develop thermal or steam crackers to make use of the ethane and ethylene associated with gas, we will have a great opportunity to reinvigorate our manufacturing sector."

Specifically, Tomblin asked members to:

§     Research and analyze the feasibility of converting ethane to ethylene using thermal or steam cracking.

§     Identify potential private sector companies that specialize in constructing and operating thermal or steam crackers and develop strategies on how to attract such companies.

§     Locate existing infrastructure in the State, including pipelines and storage facilities, which may be upgraded to be used in conjunction with manufacturing processes associated with ethane, ethylene and other natural gas byproducts.

The task force, comprised of the following people appointed by Tomblin, will report its findings to the governor on a semi-annual basis. In addition to Babe, members are: Kevin DiGregorio, executive director of Chemical Alliance Zone West Virginia; Patrick Donovan, director of the Maritime and Intermodal Transportation of the Rahall Appalachian Transportation Institute; Don Garvin, legislative coordinator of the West Virginia Environmental Council; W. Henry Harmon, president and CEO of Triana Energy; Michael John, president and CEO of Northeast Natural Energy; Jack Lafield, president and CEO of Caiman Energy; Steve Perdue, government affairs manager of EQT Corp.; Scott Rotruck, vice president of corporate development and state government relations of Chesapeake Energy; Steven H. White, director of the Affiliated Construction Trades; Kurt Dettinger, Tomblin's general counsel; and Keith Burdette, cabinet secretary of the West Virginia Department of Commerce.

The possible ethane cracker would add to the already planned gas processing facilities in Marshall and Wetzel counties. About 9 miles southeast of Moundsville, Caiman Energy's Fort Beeler cryogenic facility is now ready for operation, with another larger facility set to be open by the end of the year. Caiman is also building a 25-mile NGL pipeline that will connect the Fort Beeler plant with a fractionation facility under construction on the Ohio River in Marshall County.

Dominion Transmission recently announced plans to build a natural gas processing plant to employ 55 people in Marshall County along the Ohio River on property now owned by PPG Industries.