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SOURCE Appalachia Development Group, LLC
SOUTH CHARLESTON, W.Va., Jan. 3, 2018 /PRNewswire/ -- Appalachia Development Group, LLC, (ADG) today announced that it has been invited to submit a Part II Application for a loan guarantee under the U.S. Department of Energy (DOE) Title XVII Loan Guarantee Program. The invitation for the Part II application is for a $1.9 billion loan guarantee from the DOE to support the development of infrastructure for the Appalachia Storage & Trading Hub (ASTH). ADG recognizes that this is the first of several steps in the process to secure a conditional commitment and final loan agreement.
The Appalachia Storage & Trading Hub is a proposed underground storage facility for highly valuable natural gas liquids and intermediates. It is a built-for-purpose facility that enables tremendous benefits down range for both business and society. According to the American Chemistry Council, the development of the ASTH would serve as a catalyst for the creation of an estimated $36 billion in follow-on petrochemical investments and more than 100,000 new long-term jobs. It will increase the probability of American energy dominance by releasing the potential of the Marcellus, Utica and Rogersville Shale methane deposits for both domestic consumption and international consumption by America's allies.1
ADG submitted its Part I application on September 13, 2017, and worked responsively with the DOE Loan Program Office over the last few months. ADG will work closely with the DOE on Part II of the application process while simultaneously working to secure a $1.4 billion equity position.
"We are pleased to have achieved this major milestone, but we are far from satisfied in our pursuit of a vibrant and growing Appalachia based in sound business principles. We are grateful for the collaboration with the states in Appalachia, and industry, legal and financial partners," said Steve Hedrick, CEO, ADG and President & CEO Mid-Atlantic Technology, Research & Innovation Center (MATRIC). "There is much work to be done to drive this forward, and our team is strong, prepared and highly motivated to move forward. The growth of our business will serve the industry well, and we look forward to the day that the outputs of the ACC's report are enabled as industry grows alongside the Hub."
"I congratulate Appalachia Development Group on advancing to the second phase of consideration for the Department of Energy's Title XVII Loan Program," said Senator Shelley Moore Capito (R-WV). "This is a clear indication of the strength of their application, and it demonstrates the department's interest in the transformative job creation and economic growth potential of developing an Appalachian market for natural gas liquids. This is another step in the right direction, and I will continue working to help make this game-changing idea a reality."
"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," said Senator Manchin (D-WV). "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 and the Appalachian Development Group to make the Appalachian Storage Hub a reality."
"This is exciting news for the entire region. Our office has been working for several years to bring a regional ethane storage hub come to fruition, so it's gratifying to see this project get the blessing of the Department of Energy," said Rep. David B. McKinley (R-WV). "This project will not only transform the region, it will impact the entire country by enhancing America's energy dominance. The storage hub has the potential to create thousands of jobs, attract billions in investment, invigorate Appalachia's economy, and establish our area as a force in the petrochemical industry."
"I am grateful to both West Virginia University as well as the MATRIC Board of Directors for their unparalleled support during this journey," continued Hedrick. "Sometimes a goal is bigger than one person, one company or one state, and while we still have a long way to go and a lot of work to do, this is a significant milestone along the journey to maximize the Shale opportunity in the Appalachia region."
About Appalachia Development Group, LLC
The ADG was formed as a collaborative platform to deliver the Appalachia Storage and Trading Hub, considered to be industry's catalyst for the industrial spread associated with the prolific shale gas developments in the Marcellus, Utica and Rodgersville Shales.
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