Cost Advantages

Proximity to feedstock and the means to move the finished product to market are readily available assets in the eastern Ohio.

Natural gas production in the Utica and Marcellus shale regions has outstripped pipeline capacity creating a discount versus the national market price set at the Henry Hub. This discount is expected to continue for years.

Annual Report 2015 Skyrocketing Shale Reserves

By reducing transportation costs, substantial savings are possible for companies that choose to produce downstream products in the region versus pipe product to the Gulf of Mexico.   View pipeline/midstream processing network map

A 2015 report by Cleveland State University quantified inbound and outbound savings for an Ohio River Valley ethane cracker at $100 million a year.  See study

End-use markets are close by with 45 percent of North American polymer resin users and 49 percent of converters within 500 miles of the Appalachian Basin.

Highway, rail, Great Lakes shipping and Ohio River barge transportation make shipping finished products to markets efficient and cost effective.

Headshot ofMike Jacoby

Contact: Mike Jacoby
Vice President - Business Development
mjacoby@apeg.com
740.704.9977