The Gulf Coast has long reigned supreme as the top region for petrochemicals in the country. Now, a report released by the American Chemistry Council (ACC) argues that the Appalachian region could be developed into the country’s No. 2 location.
The potential plan was presented earlier this month by ACC CEO, Cal Dooley, to lawmakers on Capitol Hill. Dooley expressed the ACC’s support for the Appalachian Ethane Storage Hub Study Act of 2017, a bipartisan bill Dooley said is aimed at “efforts to maximize America’s domestic energy and manufacturing potential.”
“The Appalachian region has distinct benefits that could make it a major petrochemical and plastic resin-producing zone,” Dooley said. “Proximity to a world-class supply of raw materials from the Marcellus/Utica and Rogersville shale formations and to the manufacturing markets of the Midwest and East Coast has already led several companies to announce investment projects, and there is potential for a great deal more.”
Shell, for example, has announced that it plans to build a $6 billion Appalachian petrochemical plant with an annual production capacity of 1.6 million tons of polyethylene.
ACC’s hypothetical plan would supplement projects like Shell’s plant, which take advantage of abundant, low-cost natural gas to produce chemicals. The proposal calls for a new storage hub for natural gas liquids and chemicals, a 500-mile pipeline distribution network and the development of other needed energy infrastructure.
If implemented, ACC estimates that it would create 100,000 permanent jobs by 2025, including 25,700 new chemicals and plastics manufacturing jobs, along with $2.9 billion each year in federal and local taxes revenue.
“Uncertainty around financing is a key barrier to the development of energy infrastructure in the Appalachian region,” Dooley said. “As Congress and the Administration consider infrastructure modernization legislation, the Appalachian Hub should be a priority. And a timely and efficient regulatory permitting process is essential.”
