An economic report released by the American Chemistry Council (ACC) shows the Appalachian region could become a center of U.S. petrochemical and plastic resin manufacturing similar to the Gulf Coast. ACC President and CEO Cal Dooley presented the findings at a Capitol Hill press event with lawmakers including Sens. Shelley Moore Capito (R-W.Va.) and Joe Manchin (D-W.Va.).
ACC's report, "The Potential Economic Benefits of an Appalachian Petrochemical Industry," presents a hypothetical scenario that includes the development of a storage hub for NGLs and chemicals; a 500-mile pipeline distribution network; and associated petrochemical, plastics, and potentially other energy infrastructure and manufacturing in a quad-state area consisting of West Virginia, Pennsylvania, Ohio and Kentucky. It estimates direct, indirect and payroll-induced job impacts, as well as tax revenue impacts.
The economic benefits could be substantial. By 2025, the region could see 100,000 permanent new jobs, including 25,700 new chemical and plastic products manufacturing jobs, 43,000 jobs in supplier industries and 32,000 "payroll-induced" jobs in communities where workers spend their wages. The new investment could also lead to $2.9 billion in new federal, state and local tax revenue annually.
"The right policies are critical to realizing this opportunity," Dooley said. "The Appalachian Ethane Storage Hub Study Act of 2017 is an important step forward. It will help inform efforts to maximize America's domestic energy and manufacturing potential." The bipartisan bill is sponsored by Sen. Capito and co-sponsored by Sens. Manchin and Portman.
ACC's analysis projects a $32.4 billion investment in petrochemicals and derivatives and a $3.4 billion investment in plastic products put toward the construction of five ethane crackers and two propane dehydrogenation (PDH) facilities. These capital investments are underway and will likely continue through the mid-2020s.
For more information, visit www.americanchemistry.com/Policy/ Energy/Shale-Gas.