Plans advance for natural gas storage hub in Appalachia

NASHVILLE, Tenn. — Plans for an underground natural gas liquids storage hub pegged as a major job creator for the chemical industry in struggling Appalachia have cleared their first big hurdle.

The Appalachia Storage & Trading Hub initiative got approval Wednesday for the first of two application phases for a $1.9 billion U.S. Department of Energy loan, the Appalachia Development Group said in a news release and department spokeswoman Shaylyn Hynes confirmed. Appalachia Development Group, which is heading the project, said it also aims to secure $1.4 billion through other financing.

The project has taken eight years to reach this point, and Appalachia Development Group CEO Steve Hedrick said it would take several more years to come to fruition. It’s still unclear how long the second phase of the application will take, and nothing’s guaranteed.

Hedrick said the initial approval is still a win for the largescale project. The American Chemistry Council estimates the facility could attract up to $36 billion in new chemical and plastics industry investment and create 100,000 new area jobs.

That could be life-changing for people in economically downtrodden parts of Appalachia, the northern stretches of which are drilled for natural gas in Marcellus, Utica and Rogersville Shale formations, he said.

The hub’s location hasn’t been decided yet, Hedrick added.

The project would include a piping system into the Ohio and Kanawha valleys. Then a facility such as an ethane cracker could use the natural gas to produce ethylene, which is widely used in plastics and other chemical industries, Hedrick said. The natural gas liquids are also expected to be exported internationally for use by U.S. allies, he added.

The storage hub faces opposition from the Ohio Valley Environmental Coalition and other environmental groups.