Good News: Energy Department Report Shows Manchin Led Storage Hub Effort Good for Appalachia
Washington, D.C. –U.S. Senator Joe Manchin (D-WV) applauded a Department of Energy (DOE) report that demonstrates opportunities for a natural gas liquids storage hub in the Appalachian region are vast and would lead to positive economic development.
“The Appalachian Storage Hub is a vital American energy infrastructure project that will enhance energy and national security while leveraging the region’s unique energy resources for the long-term economic benefit of families, manufacturers, and communities in West Virginia, neighboring states and across the nation,” Senator Manchin said. “This storage hub will create jobs and expand the economy in the Appalachian region, which has been affected by the decline in energy production and manufacturing in the region. The Department of Energy projections prove what I’ve been saying all along, the Appalachian Storage Hub is critical to powering our nation and will attract significant investment to our region.”
In June, Senator Manchin introduced the Capitalizing American Storage Potential (CASP) Act, which would make a regional storage hub eligible for the Department of Energy’s Title XVII loan guarantee program, allowing the Mountain State to realize the unique opportunities associated with Appalachia’s abundant natural gas liquids (NGLs) resources, naturally-occurring geologic storage, and expanding energy infrastructure.
Some key points of the report:
- The Appalachian region is endowed with significant NGL resources projected to be economically recoverable over at least the next three decades. Since the boom in natural gas production – unlocked by technological innovation – industry has invested billions of dollars in natural gas and NGL infrastructure in Appalachia.
- The U.S. Energy Information Administration (EIA) forecasts that natural gas production in Appalachia will increase over 350 percent from 2013 to 2040.
- Appalachian NGL production is projected to increase over 700 percent in the 10 years from 2013 to 2023.
- Increased recovery of ethane, instead of rejecting it in the dry natural gas stream, presents opportunities for new downstream investments using ethane as a feedstock.
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