A Second Petrochemical Hub is Needed in the United States: Logical Place is Here
Rice University’s Baker Institute has just issued a study entitled “Houston-Area Surge Flooding” and its effects on regional and national security. Baker Institute issued the study to make local, state, and federal officials aware of the flooding threats as the result of the increased storm activity in the Houston-area and Gulf of Mexico.
The study provides a thorough analysis of the flooding which result in a Category 3 Hurricane in the Houston-area. In presenting the flooding information, the study identifies the regional and national security threats that could result from the refineries and petrochemical plants being flooded. It states that 25% percent of all ethylene and propylene of all U.S. production will be affected by the flooding.
“The U.S. cannot afford to lose so much petrochemical production in one location,” commented Bryce Custer, NAI Ohio River Corridor. “The Appalachian Basin offers the country the proper infrastructure to build its second petrochemical hub. Our region’s proximity to ethane gas makes it the cheapest location to convert ethane to ethylene and propylene,” Custer added.
Secretary of Energy Rick Perry recognizes the need for a second hub. He mentions it frequently when being interviewed. Additionally, he has made a number of visits to the region.
“West Virginia Senators Manchin and Capito have worked with the Energy Secretary to develop the underground storage for cracker plants in the Appalachian Basin,” stated Custer. He’s hopeful Ohio Senators can get behind the building of a petrochemical hub in the Appalachian Basin too.
While the hope is that there are no Category 3 Hurricanes in the Houston-area in the future, it does make us aware of the need for the U.S. petrochemical/chemical and plastics industries to create a second manufacturing hub. The most logical locale for this second manufacturing hub is in the Ohio River Valley. The construction of the Shell cracker plant and probably the PTTGC cracker plant make the regional ideal.
Read the study and draw your attention to the last paragraph on page 8 which explains the security threats.
The full report can be accesses here.