Overview of AEIS Assets
AEIS Infrastructure Highlights
AEIS’s assets are near major pipeline infrastructure, including the newly announced reversal and upgrade to NGL transport of the Tennessee Gas Pipeline. Further opportunities include a short extension to connect to the ATEX ethane pipeline (currently operating), a reversal and upgrade of the Texas Eastern pipeline (within 10 miles of the site), and a modification of the proposed Buckeye Express (also within 10 miles of the site) from a dry gas line to an NGL pipeline. Providing access from gathering and processing areas of the Utica/Marcellus region to the hub, while greatly reducing transportation costs and decreasing ethane rejection rates.
The Ohio River provides waterway access to the northeast and Gulf coast. Access to large amounts of water for solution mining and hydrofracking requirements is a key aspect of site location. The Ohio River and other locales offer close access to large supplies of water required for world class level operations. AEIS has the footprint to potentially offer subsurface storage options to handle the waste materials from these nearby activities.
A substantial base of human capital is required for building and operation of the storage hub. The tri-state region of Ironton, Ohio, Huntington, West Virginia, and Ashland, Kentucky are among the metropolitan areas with the industrial background experience. The project will promote significant job creation and economic development.
The area is also serviced by a major interstate (I-64), US 52, a four-lane divided highway, Ohio State Route 93, Lawrence County Route 26, and Ohio State Route 650. These roads are lightly traveled and large vehicle habitable. In addition, the Norfolk Southern Railway system passes within a few miles of the site, providing for potential rail distribution.
Market Perspective & Defined Hub
Charts & Graphs
The following discussion examines the kinds of physical assets typically present in a NGL hub. When pertinent, Appalachia-specific examples for physical NGLs infrastructure development are cited. This then discusses what a trading hub is, how trading happens, and various ancillary benefits generated by these activities. This section also provides a look at existing NGLs trading in Appalachia and ends with a descriptions of three existing North American NGLs.
In addition to infrastructure enabling commodity flows and demand response, energy hubs feature an array of financial activities and relationships involving multiple parties. Such parties include commodity producers and consumers, transportation and logistics service providers, hub operators, legal service providers, financial institutions, traders, and regulators. This confluence of activities and actors shapes the market dimensions of a hub and the relationships between and among the parties involved become more complex when physical and financial commodity transactions occur. An energy hub engenders economies of scale in resource utilizations, information sharing, and innovations, which, in aggregate, enhance the hub’s value over time. Energy hubs and the activities shaping them are also highly visible, allowing them to attract potential participants and investments in infrastructure and the commodities traded there.
Interested in learning more about The AEIS Project?
Our partnerships acknowledge and disclose that this website was created using publicly available internet resources. The respected institutions mentioned herein are the best at what they do and we appreciate their efforts. The representations throughout this website combines the research and opinions, accessed through publicly available information associated with said institutions.