Pipeline Construction Holds Promise for Oil and Gas in Ohio

In November 2014 the Stark Carroll Oil & Gas Partnership sponsored "Pipeline 101," a conference that showcased how the oil and gas industry, and the pipelines that serve it, represent the backbone for economic growth in Ohio, Michigan and the surrounding region.

The topic remains timely, as evidenced by the announcement earlier this month that Kinder Morgan was moving forward with plans to build a 240-mile pipeline across Ohio. If approved, the pipeline will create as many as 1,000 jobs and, when complete, will be used to transport propane and ethane to Canada. 

According to an article in the Canton Repository, "The $500 million pipeline will have an initial capacity of 50,000 barrels per day of ethane or an ethane-propane mix. The two byproducts of natural gas production are valued in plastics production."

The company must first apply for permits from state and federal regulators before beginning work on the pipeline, which will start in Cadiz and stretch through parts of Carroll, Tuscarawas and Stark counties before crossing the state line into Michigan just west of Toledo.

Kinder Morgan didn't stop there. Before the month was over, the company had bypassed the uncertain credit markets by going directly to banks to refinance—to the tune of $1 billion—its maturing debt. The financing will enable the company to move forward with its various growth projects, including the Utopia East pipeline here in Ohio.

Meanwhile, the Akron Beacon Journal reported that the Ohio Environmental Protection Agency will sponsor a public hearing in February on a proposed air permit for a Medina County compressor station for the $2 billion Nexus natural gas pipeline. The pipeline, with a proposed construction timeline beginning in 2017, would stretch for 255 miles and pass through Stark, Summit, Wayne and Medina Counties in Northeast Ohio.

The ongoing construction of pipelines here and in other parts of the country are projects to watch. They will serve to create jobs and bolster local economies as the oil and gas industry continues to weather to downturn that hit especially hard in 2015. 

The Stark Carroll Oil & Gas Partnership promotes the growth and economic impact of the oil and gas industry in Stark County and Carroll County, Ohio.

Pipeline 101 Event Highlights Ongoing Development in Stark County and Ohio

The oil and gas industry, and the pipelines that serve it, represent the backbone for growth in Ohio, Michigan and the surrounding region.

That was the message heard at Pipeline 101, the latest  event sponsored by the Stark County Oil & Gas Partnership, which took place on Nov. 19 at Tozzi’s on 12th  in Canton.

Mike Chadsey of the Ohio Oil & Gas Association opened the evening by explaining how existing and proposed pipelines will affect the overall Utica Shale play, 

Peter Lidiak, pipeline director for the American Petroleum Institute, gave an overview of pipelines in the U.S. He explained that 50 percent of pipeline in the ground was installed before the 1950s, and that the rest were installed primarily from 1970 to 2000.

Today, Lidiak said, the industry has responded to safety considerations learned from past technology to use higher strength materials, better welding practices and better construction methods.

Dylan Borchers, and attorney with Bricker & Eckler Attorneys at Law, discussed the Federal Energy Regulatory Commission’s regulation issues, along with the process for siting pipelines for the FERC and the State of Ohio.

Finally, Arthur Diestel of Spectra Energy gave  a positive overview of the Nexus Pipeline that will be running through northern Stark County. He said the primary focus of the project is to deliver natural gas for power generation, industrial growth, and local distribution to consumers, citing the fact that the gas delivered by the pipeline would be enough to heat 8 million homes per year.

Doug Lane, a board member of the Partnership and chair of the Stark County Chamber Association, moderated the event. Refreshments were provided and a networking hour concluded the evening.