Jul 22, 2018 4 min read

In Washington County, we know that the power to prosper is right under our feet with the continued growth of natural gas development and related investments in pipeline infrastructure. These two sectors alone have helped to revive local manufacturing and create spinoff opportunities that have benefitted businesses throughout Southwestern Pennsylvania.

Now, efforts to create and advance a regional storage and distribution hub for ethane could take our economy to entirely new levels. Ethane is the primary building block of the chemical industry. Creating this storage and distribution hub could be the building block for even more jobs and business investment across three states.

The idea was at the center of the second annual Appalachian Storage Hub Conference held in Southpointe in early June with the Washington County Chamber of Commerce serving as the main sponsor. It gained even more traction later that same month when the Pennsylvania Senate unanimously approved a bipartisan resolution (SR 375) calling on Congress to support the development of an ethane storage hub in the Appalachian region. This resolution was introduced and championed by our local state senator, Camera Bartolotta, who understands the positive impact of the energy industry and the opportunities the storage hub will bring to our region.

There is a reason the resolution won unanimous support. Pennsylvania’s chemical industry already supports nearly 80,000 direct and indirect jobs, resulting in $24 billion in economic activity and more than $410 million in state and local taxes. Developing an ethane storage and distribution hub in the Appalachian region would lead to additional investments that could eventually create as many as 100,000 new direct and indirect jobs and $28 billion in new economic output.

For the Pennsylvania Energy Infrastructure Alliance, a statewide group that our chamber helped to launch to push for energy investments, these efforts truly resonate. You cannot have an Appalachian gas storage hub without one critical component – the pipeline infrastructure to get it there and then eventually take it to market.

Consider the Falcon Pipeline needed to supply Shell’s new ethane facility in Beaver County. That multibillion-dollar plant is bringing approximately 6,000 construction jobs to the region and is anticipated to support 600 full-time jobs. Or the 350-mile statewide Mariner East pipeline network that supplies the Marcus Hook Industrial Complex in Delaware County. The Mariner East pipelines will generate a one-time economic impact of nearly $9.1 billion in Pennsylvania and support 57,070 jobs during the entire construction period – the equivalent to 9,520 jobs each year for six years with earnings of $2.7 billion.

And our communities will benefit, not just from the jobs and economic opportunities, but through continued direct investments.

Just last month, the Pennsylvania Public Utility Commission announced the 2018 distribution of the Act 13 natural gas impact fee, which this year totaled $209.6 million statewide – a $36 million, or 21 percent, increase over last year. The $209.6 million collected represents the largest year-over-year increase since Act 13 was enacted in 2012. To date, the tax paid by natural gas producers has generated $1.5 billion for the commonwealth, benefiting every county.

When you consider funding directed to Washington County and our individual municipalities, the total amount of Act 13 funds being distributed and shared throughout Washington County is nearly $19.88 million which is the largest total among counties statewide. In Washington County, these funds have been used by Washington County Commissioners Larry Maggi, Diana Irey Vaughan and Harlan Shober Jr., to invest in new infrastructure, keeping taxes low and improving our county parks. On a local level, our municipalities are investing in improving roads, creating playgrounds and parks as well as other new amenities for their residents. It is easy to understand that when natural gas production goes up, impact fees go up – with our communities being the direct beneficiaries.

If an ethane storage and distribution hub is located here, there will be more opportunities to harness these resources, build the infrastructure necessary for delivery and ensure the continued and sustained growth of an economy fueled by local energy. We know that the power for Washington County to prosper is right under our feet. We just need to keep it moving.

Jeff Kotula is president of Washington County Chamber of Commerce.