The U.S. Department of Energy released on Tuesday a Report to Congress highlighting the potential for the development of an ethane storage hub in the Appalachian Region.
Ethane, a natural gas liquid (NGL), has applications as a feedstock for petrochemical manufacturing. Production of ethane in the Appalachian basin is expected to continue to grow through 2025 to a total of 640,000 barrels per day.
“We are encouraged by @Energy @SecretaryPerry’s release of this report quantifying the major economic potential of a regional ethane storage hub,” the Pennsylvania Chamber of Business and Industry said in a tweet. “Our #energy assets can position us for a global leadership role in advanced manufacturing.”
The hub would be based on the region’s Utica and Marcellus shale resources. According to the DOE report, the hub could provide security and reliability by improving the geographic diversity of the U.S. petrochemical industrial sector and helping it to gain market share in the industry. The Report to Congress compares the potential Appalaichan region hub to existing hubs servicing the Gulf Coast and Permian Basin.
“There is an incredible opportunity to establish an ethane storage and distribution hub in the Appalachian region and build a robust petrochemical industry in Appalachia,” U.S. Secretary of Energy Rick Perry said Tuesday at the annual National Petroleum Council Meeting in Washington D.C. “As our report shows, there is sufficient global need, and enough regional resources, to help the U.S. gain a significant share of the global petrochemical market. The Trump Administration would also support an Appalachia hub to strengthen our energy and manufacturing security by increasing our geographic production diversity.”
Ethane production in the Appalachian basin is more than 20 times greater than it was five years ago. Since 2008, the share of U.S. natural gas production of Ohio, Pennsylvania, and West Virginia has increased from two percent to 27 percent.
“Pennsylvania is strongly positioned to continue to grow good-paying energy, small business, and manufacturing jobs across the Commonwealth,” David Spigelmyer, president of the Pittsburgh-based Marcellus Shale Coalition, the region’s largest shale development trade association, said. “We appreciate the Trump Administration’s support for creating middle-class jobs and enhancing America’s global energy leadership.”