Appalachia Group Awards Contract for $3.4B Ethane Storage Hub
A proposed multibillion-dollar regional storage complex for natural gas liquids sourced from the Marcellus, Utica and Rogersville shale plays this week moved one step closer to reality this week.
“ADG and Parsons form a unique and strong team,” Steve Hedrick, CEO of Appalachia Development Group, LLC (ADG) told Rigzone after his organization announced Wednesday that it had named Parsons Corp. as its engineering, procurement and construction (EPC) partner for the buildout of the Appalachia Storage and Trading Hub (ASTH).
“We are driven by the greater vision of $36 billion in follow-on investment associated with this catalyst for development of the petrochemical industry in Appalachia,” Hedrick added.
According to ADG, Parsons will initially focus on the pre-front end engineering design (FEED) and FEED stages including project management and execution planning. Subsequent phases would include constructing the $3.4 billion project and its long-term operation, the Charleston, W.Va.-based project sponsor stated.
The American Chemistry Council (ACC) has estimated that the ethane storage hub would act as a catalyst for more than $36 billion in follow-on petrochemicals investments and the creation of more than 100,000 long-term jobs, ADG reported. On January 3 of this year, ADG stated that its application for a $1.9 billion loan guarantee for ASTH from the U.S. Department of Energy (DOE) had advanced from the first to the second phase of DOE’s review process.
“The Pre-FEED and FEED phases will support our Part II application to the DOE Title XVII Loan Guarantee Program,” Hedrick explained. “From filing, approval of the Part II application can take from approximately six months to two years. Therefore, speculating on a timeline for future phases is premature.”
As it pursues a DOE loan guarantee, ADG is also trying to secure $1.4 billion in private funding for the project.
“A complex array of investors are engaged, from private equity to investment banks to strategic investors whose own success in their sector is advantaged by the success of this catalyst for the development of the petrochemical industry,” Hedrick said.
“Parsons is honored to have been selected by ADG as a partner on this critically important project that will ultimately support the economic and energy security needs of so many communities and citizens, including economic revitalization of the Ohio River Valley states,” Carey Smith, president of Parsons’ federal business unit, said in Wednesday’s announcement.
A 2017 Appalachian Oil and Natural Gas Research Consortium study provides more details about the ASTH proposal.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Two Main Forces Have Come Together to Pull Down Commodity Prices
- UK Offshore Energy Calls for Labour Party Meet
- Aker BP's 1.07 Bboe North Sea Projects Get Parliament Nod
- Coal Getting Cheaper in China Despite Heat-Induced Demand Surge
- Mitsubishi Shipbuilding Eyes to Fuel Sea Transport with Ammonia
- Americas Exploration Heats Up
- Distillate Crack Spreads Return to February 2022 Levels: EIA
- Gas South Inks Plumbing Deal for Its Consumers
- Saudi Oil Cut Risks Leaving Bitter Taste for Budget
- Irving Oil Starts Review That Puts Key Refinery on Market
- Saudis Remind Global Oil Market Who is King
- Saudi to Cut Output by 1MM BPD in Solo OPEC+ Move
- Data Science is the Future of Oil and Gas
- Debt Ceiling Deal Becomes Law
- What Do Latest OPEC+ Moves Mean?
- TotalEnergies Inks Agua Marinha PSC in Brazil
- Fatality At North Rankin Complex
- North America Loses More Rigs
- Par Pacific Completes Buy of ExxonMobil Refinery
- Does the Global Drug Trafficking Industry Affect Oil and Gas?
- Which Generation Is Most in Demand in Oil, Gas Right Now?
- Who Is the Most Prolific Private Oil and Gas Producer in the USA?
- USA EIA Slashes 2023 and 2024 Brent Oil Price Forecasts
- BMI Reveals Latest Brent Oil Price Forecasts
- Is There a Danger That Oil and Gas Runs out of Financing?
- BMI Projects Gasoline Price Through to 2026
- What Will World Oil Demand Be in 2023?
- North America Rig Count Reduction Rumbles On
- What New Oil and Gas Jobs Will Exist in the Future?
- What Does a 2023 USA Recession Mean for Oil and Gas in the Country?