Manchin Applauds Department of Energy Progress Toward $1.9 Billion Loan Guarantee for Appalachian Storage Hub
Washington, D.C. – U.S. Senator Joe Manchin (D-WV) applauded the Department of Energy’s (DOE) decision to invite the Appalachia Development Group, LLC (ADG) to begin Part 2 of the application process for a $1.9 billion loan guarantee – a critical step in the loan guarantee process. Senator Manchin has led efforts in the Senate to help develop the Appalachian Storage Hub, which would create jobs and grow the economy in the Appalachian region. Senator Manchin commends ADG’s work and looks forward to working with all stakeholders that seek to advance this extraordinary regional opportunity.
"I am very excited that the Department of Energy is moving forward with the Appalachia Development Group in its efforts to secure a loan to develop the Appalachian Storage Hub. I have long said that the Appalachian Storage Hub is a vital project that will help us capitalize on our state and region's abundant natural resources, growing infrastructure and innovative spirit," Senator Manchin said. "This storage hub will create jobs and develop our economy by attracting significant manufacturing and related investment to West Virginia and our neighboring states. It will also be vital in helping to secure our energy future by providing a reliable affordable supply of natural gas liquids. I look forward to working with the Department of Energy, the Appalachia Development Group to make the Appalachian Storage Hub a reality.”
In June, Senator Manchin introduced the Capitalizing American Storage Potential (CASP) Act, highlighting the eligibility of a regional storage hub 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 and natural gas liquids (NGLs) resources, geologic storage opportunities, and expanding energy infrastructure.
An abundance of wet natural gas in the Marcellus, Utica and Rogersville shale formations has recently resulted in significant announcements of new investment in the Appalachian region, particularly by the natural gas and petrochemical industries. In fact, the region’s supplies of natural gas liquids (NGLs) are highly underutilized. In a recent report, the American Chemistry Council concluded that the creation of such a hub would allow the Appalachian region to seize on the opportunities associated with these valuable natural resources, potentially attracting up to $36 billion in new chemical and plastics industry investment and creating 100,000 new jobs in the area. The construction of a hub and the associated infrastructure and ethylene/polyethylene facilities, will attract sorely needed economic activity to this underserved part of the country, which continues to suffer from high unemployment as a result from the downturn in both energy production and manufacturing.
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