Bipartisan legislation introduced by U.S. Sens. Shelley Moore Capito (R-WV) and Rob Portman (R-OH) this week would authorize studies on establishing an ethane storage and distribution hub in Appalachia, one step toward helping build the infrastructure needed to support the nation’s energy strategy.
The Appalachian Ethane Storage Hub Study Act would direct the secretaries of energy and commerce to undertake a feasibility study to analyze potential locations for a subterranean ethane storage and distribution hub near Marcellus, Utica and Russellville shale plays, which are shale formations that contain large natural gas accumulations.
“Making the most of our energy and manufacturing potential is critical to driving economic growth and development in states like West Virginia and across the country,” Capito said. “The Appalachian Ethane Storage Hub Study Act will help us figure out the best way to utilize the region’s resources and improve our infrastructure. Not only will this legislation inform future projects and policies, but it will also help attract private dollars to ensure Appalachia remains an important player in America’s energy and manufacturing strategy.”
The study would consider geography, economic feasibility and benefits, and infrastructure and proximity to production areas. In addition to helping to shape federal energy and infrastructure policy in the region, the study also aims to encourage private investment in Appalachia.
“According to a recent study, southeastern Ohio and the surrounding region could see billions in private investment in new petrochemical manufacturing by 2025,” Portman said. “This legislation is a first step in the process of making the potential plans a reality by ensuring that the region has the infrastructure in place to meet anticipated demands.”
Increases in natural gas production in Marcellus, Utica and Russellville shale plays have shaped the nation’s natural gas market, but lack of infrastructure and storage has led to gas being “locked in.”
U.S. Sen. Joe Manchin (D-WV), who introduced the bipartisan bill with Capito and Portman, said the bill and resulting study are an important step in helping to realize the potential of an ethane storage and distribution hub in the region. This type of hub would help attract significant manufacturing investments to the region, create well-paying jobs, and boost the region’s economy, he said, while also providing the national security benefits associated with the critical infrastructure.