Chemical industry applauds officials for leadership in advancing the development of an ethane storage hub

Harrisburg, PA (June 5, 2018) – This week, members of the Pennsylvania General Assembly, led by Sen. Camera Bartolotta (R-Greene/Washington) and Rep. Jim Christiana (R-Beaver), demonstrated their commitment to maximizing the potential of the Marcellus and Utica Shale formations by introducing a resolution to support the establishment of an ethane storage hub in the Appalachian region.

The resolution calls for the expedient passage of several pieces of federal legislation and policies to support the storage hub’s development.

“Pennsylvania has the assets to be a strong player in the global plastics market, and the Shell Polymers plant investment is a signal to industry that Pennsylvania is open for business,” Bartolotta said. “This resolution demonstrates our support for continued momentum in capitalizing on the commonwealth's energy resources long term and ensuring we’re putting natural gas to work for the people of Pennsylvania. The development of an ethane storage hub in the Appalachian region would build a strong foundation for future investments.”

According to “The Potential Economic Benefits of an Appalachian Petrochemical Industry,” a study commissioned by the American Chemistry Council, the region contains enough natural gas liquids feedstock to attract $35 billion in new chemical and plastics industry investment. Investments of this scale could create 100,000 jobs, $28 billion in new economic output, more than $6 billion in annual payroll, and nearly $3 billion a year in federal, state and local tax revenue.“Shell’s investment was the first of many to produce the next generation of industrial and economic prosperity for western Pennsylvania,” Christiana said. “I was proud to play a role in bringing industry, labor and government to the table to make that a reality. That investment started with a conversation, and we need to continue those conversations and efforts to solidify the sustained and diversified benefit of building out markets around the state’s energy resources.”

Chemical companies respect and prioritize their role in protecting their workers, transportation partners and communities across America. They make good on their commitment to safety through world-class industry programs that focus on preventing accidents and providing valuable resources to emergency responders.

Wednesday, PCIC had the opportunity to see that commitment firsthand at the Transportation Community Awareness and Emergency Response (TRANSCAER) training that took place at the Wheeling and Lake Erie Rook Yard in Carnegie.

More than 50 first responders from the region attended the free, full-day training, which provided an overview of railroad safety and chemicals, and hands-on training on the various emergency response kits and leak-mitigation scenarios specific to transporting chlorine.

More than 50 first responders participated in the free, full-day training in Carnegie. 

Natural gas development was sure to be a boon for Pennsylvania. The sustainability and growth of that boon depend on the continued responsible development of our energy resources and fair taxes and regulations set on the industry.

The Marcellus Shale is the second-largest gas field in the world. According to an IHS Markit Study, in 2015, natural gas from the Marcellus and Utica Shale plays accounted for a quarter of all natural gas produced in the United States and is expected to account for more than 40 percent of the nation's natural gas production by 2030.

The direct jobs are here and growing. On the generation side, the Energy Information Administration expects about 21 GW of natural gas-fired generators will come online in 2018, with 5.2 GW coming from Pennsylvania. What does this mean for the chemical and petrochemical industries?

Although access to low-cost electricity is always a top priority for business and manufacturers, it’s the ethane and propane component of natural gas that compounds the value, will open doors for diverse investment and grow the industry supply chain here. These high-value natural gas liquids are used in basic petrochemical production and plastics manufacturing, and they are prevalent in the region’s natural gas.

With 73 percent of the United States and Canada's polyethylene and 67 percent of the polypropylene demand falling within a 700-mile radius of southwestern Pennsylvania, the region is ripe for investment. This is exactly what Shell had the foresight to capitalize on in Beaver County.

According to Shell, “Locating the facility close to both supply and markets will reduce economic and environmental transportation costs and provide regional plastic manufacturers with more flexibility, shorter supply chains and enhanced supply dependability.”