The Appalachian Basin's booming oil and gas
Ormet shuttered the plant in October 2013 after facing low aluminum prices and climbing electricity rates, putting more than 1,000 people out of work. The company later filed for Chapter 11 bankruptcy protection and sold the property to Wisconsin-based Niagara Worldwide LLC, which bid $25 million for the property.
Niagara President Eric Spirtas told NGI's Shale Daily that his company, which specializes in property redevelopment and facility operations, among other things, originally envisioned a service terminal for the Appalachian Basin's booming oil and gas industry when it purchased the property.
"Absolutely," he said when asked if the Utica and Marcellus shales had any influence on Niagara's decision to bid for the site. "This is what I do -- demolition. It's a matter of asking interested parties ‘what do you need and when do you need it?’"
Oilfield service companies and others have already scheduled storage at the site before the region's first snowfall, Spirtas said, while well equipment is soon expected to be staged there and demolition is underway to make room for services that will support sand, limestone, chemical and water handling operations.
Niagara is holding an auction this week to sell-off hundreds of pieces of rolling stock, transformers, service items and other equipment from Ormet's operations. Spirtas said 20 interested parties, all of which are related to the oil and gas industry, have stepped forward about operating at the plant. Negotiations have already started with some of those parties, and Spirtas said he met with a "large gas processing" company over the weekend.
Located in Hannibal, OH, along the Ohio River, the site is ideally suited for an oil and gas service terminal, Spirtas added. It's already home to 52 dock slips for barges, railway and highway access, while material handling equipment and water treatment are available as well.