Short line freight railroad Columbus & Ohio River Rail Road Company, a subsidiary of Genesee & Wyoming, has signed a long-term agreement to serve the $900 million natural gas liquids fractionation center being constructed in Scio, Ohio, by Utica East Ohio Midstream.
The processing, fractionation and storage facility’s location was selected based on its proximity to the Utica Shale’s gas, and the facility is expected to generate 10,000 carloads of NGLs each year once in operation.
The Scio plant is scheduled to open in May 2013. It will benefit from a recent $2 million expansion of CUOH’s main railyard in Newark, Ohio, funded by a public-private partnership between the state of Ohio and CUOH. The yard will serve several new Utica Shale-based projects that have located or are planning to locate on the CUOH.
GWI’s Ohio, Pennsylvania and New York railroads directly overlay the core development areas of the Utica Shale and western Marcellus Shale formations.