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MarkWest Energy Partners, L.P. Message Board

  • intarzletrol intarzletrol Oct 3, 2013 3:27 PM Flag

    MWE Buys RR LINE: Boardman Ohio to Beaver PA

    Interesting. This will go from the Utica into Beaver County PA. As I recall MWE purchased land on the Ohio River just down stream from where Shell has an option on the Horseheads site. (Possible Cracker) Beaver County lies just to the North of this site. MWE lost out to Williams on Shell's stripping and fractionation needs in Northern Pa. I wonder if this has anything to do with Shell's open season to line up ethane for the cracker?

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    • great find intarz. location, etc makes bet is on a pipeline right of way ake noted for kmp jv

      “At this time they don’t want to say anything else because it’s a very competitive business,” he said of MarkWest.

      "...The railroad, known as the Youngstown & Southern Railroad, runs from Boardman (Mahoning County), OH through Columbiana, Rogers and Negley (all in Columbiana County), ending it’s tracks at Darlington (Beaver County), PA.

      What will MarkWest do with a railroad? Right now, they’re being tight-lipped…"

      "...As part of the proposed deal, the board also approved an agreement with the Youngstown & Southern Railroad Co., which operates the railroad under an existing lease. Under the agreement, YSR would continue operating the railroad and pay the port authority $25 for every rail car of freight hauled on the line in excess of 1,000 carloads per year. The agreement ends in 2024 or when the YSR has paid the port authority $350,000, whichever comes first.

      Drake said MarkWest is happy with this arrangement because it has no interest in operating a railroad. “That’s not their forte,” he said...."

    • Could it be that MWE wants to ship propane thru a pipeline to be north and then ship by boat to Europe.

    • Interesting in deed. If the line passes by or near the shell site, it could be an alternate to a single class I, CSX. Early on Shell's early concern was to have multi rail service. But the Horsehead site is only served by CSX. This could be another option, and or another short line takeaway for a new MWE plant. Could also function for multi use such as for a frac sand site, etc. The key is connecting lines, I think this line interchanges with the G&W and NSC. I'll see what more I can dig up on the rail line.
      Thanks for sharing the news.

    • Hey,thanks! What a neat piece of news. My guess is that MarKWest is picking up this RR line for two possible reasons: 1. This 36 mile long RR sure opens up a lot of possible plant sites for MWE in a a very active area...and you can always add a 3 or 4 mile spur to open up even more possibilities and 2. You can always use a RR right of way to put in pipelines...the $3 million MWE paid is chicken feed for east/west access like this! And if MWE actually puts in a fractionation unit along this RR it can be used as a RR to ship out the separated natural gasoline, propane,butane,pentane etc. as far as ethane goes, I can sure see an ethane pipeline using this RR right of way...but you sure won't see RR tank cars of ethane using this RR. Too dangerous to ship either ethane or methane in big volumes by rail.