Engineering firm selected for Appalachia regional gas hub

By Patrick C. Miller | August 31, 2018

The Appalachia Development Group in Charleston, West Virginia, has selected Parsons Corp. as its engineering, procurement and construction partner for buildout of the proposed $3.4 billion Appalachia Storage and Trading Hub (ASTH).

Heaquartered in Pasadena, California, Parsons will initially focus on front-end engineering and design, including project management and execution planning. ASTH is being planned as a regional underground storage facility for natural gas liquids and intermediates produced from the Marcellus, Utica and Rogersville shale methane deposits.

In January, ADG announced that based on the merits of its Part I Application, it had advanced to the next phase to submit a Part II application for a loan guarantee under the U.S. Department of Energy (DOE) Title XVII Loan Guarantee Program. The application is for a $1.9 billion loan guarantee from the DOE to support the development of infrastructure for the ASTH. ADG is working with DOE on Part II of the application process while simultaneously working to secure $1.4 billion in equity investment.

“After a rigorous review process of some of the most widely known and respected EPC companies in the country, we are pleased to announce the selection of Parsons as our EPC partner,” said Steven Hedrick, ADG president and CEO. “Parsons has proven and successful experience with complex infrastructure projects. I have confidence in Parsons’s ability to support the development and completion of the hub safely, effectively and efficiently.”

Carey Smith, president of Parsons federal business unit, said, “Parsons is honored to have been selected by ADG as a partner on this critically important project that will ultimately support the economic and energy security needs of so many communities and citizens, including economic revitalization of the Ohio River Valley states.”

As a built-for-purpose facility, the ASTH is expected to provide significant benefits in commercial activity and job creation in the region. 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.