West Virginia Executive Spring 2018 | Page 67

Defining the Structure The Appalachia Storage and Trading Hub will be more than just storage. It will consist of a network of pipelines that will connect to industrial sites within the petrochemical industry such as the Shell cracker in Monaca, PA, and the PTT Global Chemical cracker in Belmont County, Ohio. The subsurface storage of the hub will act as intermediate storage for raw materials, which is key to preventing upsets in the supply chain. Companies like Shell and PTT Global will then have surge capacity in raw materials stored so they will not be forced to shut down operations in the case of an extreme weather event or disaster because access to the hub’s materi- als will enrich that supply. The pipelines will connect facilities like the crackers to the hub’s subsurface caverns, which will be created in either a limestone, sandstone or salt formation. Limestone and salt formations make for ideal environments for NGL storage due to their stability and porosity. The lime- stone caverns would be 2,000 feet below surface and would resemble a limestone mine with caverns and pillars to support the roof. While limestone requires miners go underground to carve out the caverns, the salt formation does not. With salt, fresh water is pumped underground, dissolving the salt and forming a cavern. According to Anderson, there are a number of reasons why underground storage is preferred. “Ethane at the surface at normal pressures is a vapor,” he explains. “It’s transported in the pipeline as a liquid under high pressure. If you store very large amounts of ethane at high pressure on the surface, many additional safety concerns must be addressed. It also involves a lot of steel, which brings concerns over the long haul about mechanical integrity through corrosion and even punctures. The water pressure that exists underground, called hydrostatic pressure, will be at a higher pressure than our ethane. We will store ethane at a pressure that is lower than the surrounding water pressure. If there is any leakage, it’s actually leaking water into the cavern. You run a pump to remove it, and it’s no big deal. If you were to store it in a big tank on the surface, you don’t have that option. The atmosphere is at normal atmospheric pressure, and you would be storing ethane at a much higher pressure. If there were any leaks, it would be leaking ethane. It’s much safer to store it underground.” Anderson also explains that with the amount of storage needed, the surface disturbance is pretty small with un- derground caverns. “You have an access shaft if it’s mined storage or you have wellheads just like oil and gas wells that are at the surface,” he says. “You can have a whole series of caverns underground and access a lot of space with a very small surface footprint.” Selecting the Site Site selection is still underway for the Appalachia Storage and Trading Hub. While West Virginians would love to see the $36 billion facility within its state boundaries, it’s important to understand that the final location of the hub doesn’t matter as much as the actual construction of the hub. “The industry spread is the win,” says Hedrick. “Competing for the storage hub is like competing for the one cracker years ago. The hub needs to be in Appalachia. If you want to do the win-lose thing, the loss is to see all of our NGLs exported to Southern West Virginia Keeping Families Close The mission of Ronald McDonald House Charities (RMHC) of Southern West Virginia is to provide a home away from home for families of sick children and to create and support programs that directly improve the health and well-being of those children. The board and staff at RMHC are proud of Executive Director Dewayne Dickens for his contributions to RMHC and the communities it serves and for being recognized by West Virginia Executive magazine’s Spirit of Service profile series. CharlestonRMHC.org | (304) 346-0279