McKinley: DOE Report Shows Potential for Petrochemical Hub in Appalachia

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Washington, December 4, 2018 | comments
Today, Secretary Rick Perry announced the release of a new study by the Department of Energy detailing the potential for a petrochemical hub located in the Appalachian region. The report highlights the amazing growth of production of natural gas and natural gas liquids (NGL’s) in the Marcellus and Utica Shales and emphasizes the benefits an ethane hub would have for America’s economy.
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Today, Secretary Rick Perry announced the release of a new study by the Department of Energy detailing the potential for a petrochemical hub located in the Appalachian region. The report highlights the amazing growth of production of natural gas and natural gas liquids (NGL’s) in the Marcellus and Utica Shales and emphasizes the benefits an ethane hub would have for America’s economy.

“This report affirms what we have been talking about for years,” said McKinley. “Natural gas production in the region has grown by leaps and bounds over the past decade. The next logical step is to take full advantage of this resource and develop a petrochemical industry in the region.”

“With the vast majority of America’s petrochemical industry located on the Gulf Coast and vulnerable to disruptions by hurricanes, it is in the national interest to diversify and build a secondary hub in West Virginia, Ohio, Pennsylvania, and Kentucky” said McKinley.

The report finds that 95% of America’s ethylene production capacity is located in Texas and Louisiana. Ethylene is an important feedstock used in chemicals and plastics.

“West Virginia and surrounding states are poised to become a leader in petrochemicals and manufacturing, but we need to build the necessary infrastructure to make it work,” added McKinley. “I am committed to continue working with Secretary Perry and other government and private stakeholders to make this happen.”

To read the full report click here.

 

Background

Since 2015, McKinley has been working on the development of an ethane hub in the region that would take advantage of the abundance of natural gas liquids being produced and attract manufacturing.

McKinley has taken a number of steps to advance this project, including:

  • Introducing the Appalachian Ethane Storage Hub Study Act (H.R. 2568), which directs the Secretary of Energy and the Secretary of Commerce to conduct a feasibility study of establishing subterranean ethane storage and distribution hub in the Marcellus, Utica, and Rogersville shale plays.
  •  Subsequently, the Department of Energy has released two reports regarding the feasibility and demand for this type of project in December 2017 and December 2018. They reports can be found here and here.
  •  Introducing the Capitalizing on American Storage Potential Act (H.R. 3143) which would allow the ethane storage project to qualify for a Department of Energy loan guarantee program.
  •  Hosting Secretary Perry in West Virginia in July 2017 to discuss the Appalachian Hub project.

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