Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
      • 2023 winners
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Bioplastics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
February 27, 2014 01:00 AM

Study says West Virginia lacks infrastructure for ethane cracker

Kerri Jansen
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    A potential new ethane cracker in West Virginia could yield billions of dollars for the regional economy, but will require a commitment to developing infrastructure the region currently lacks, according to a study released Feb. 25.

    Author Tom Witt, an economist and professor emeritus at West Virginia University, also explored the potential of a new ethane cracker to attract downstream investments in the form of plants manufacturing polyethylene-based end products, most likely in the film and sheet and injection molding sectors.

    "As we continue to capture more of the value added from the natural gas … through the development of the ethane feedstock into an ethane cracker PE complex and downstream into fabrication facilities that use those polyethylenes, it has the ability to really rejuvenate the chemical and the downstream manufacturing sector in West Virginia," Witt said in a conference call about the research.

    Witt presented his findings to the state legislature's natural gas caucus Feb. 25. Braskem America Inc., a petrochemical company co-owned by Odebrecht, provided funding for the study.

    Odebrecht, a Brazilian construction conglomerate, is one of a handful of companies that have shown interest in operating an ethane cracker in the state. The region including West Virginia, as well as Ohio, Pennsylvania and other nearby states, has seen a natural gas boom in recent years with the development of new mining technologies, with experts predicting continued growth in the industry.

    Witt's study is based on a theoretical ethane cracker costing $3.8 billion, plus additional investments to build a pipeline, ethane storage facilities and rail and truck terminals that the region currently lacks. He estimates a direct annual output from the ethane cracker and associated PE plants of $530 million at startup, ramping up to a direct output of $585 million annually at full production.

    The facilities could employ an estimated 325 full-time, permanent staff with total yearly compensation of $35 million, plus additional temporary construction jobs, according to the study.

    These numbers do not include indirect and induced effects of the ethane cracker's operation in the region.

    Witt further explored the economic impacts of two scenarios involving downstream plants using products from the cracker. The operation of two large film and sheet plants and one large injection molding plant could have an estimated direct output of $190 million, the study found. Witt estimated the output of two medium-sized film and sheet plants and two medium-sized injection molding plants at around $116 million.

    Though West Virginia's access to local raw material is a significant draw, expanding the petrochemical industry in the region would not be without obstacles. To attract investments in chemical manufacturing, a necessary first step is to develop infrastructure like pipelines and transportation routes, Witt said.

    "It's very essential that we have an ethane pipeline to deliver that ethane … to appropriate locations within the region where ethane crackers would be located," he said.

    Existing pipeline structures extend out-of-state, Witt said. Adding the appropriate regional infrastructure would cost an estimated $150 million.

    Witt estimated the necessary rail and truck terminals to carry resulting products to market would cost around $20 million, and ethane storage facilities another $20 million.

    And though the region's industrial base offers a variety of skill sets, additional development is needed to ensure the availability of an adequate skilled workforce for a growing petrochemical industry, according to the study.

    "Supporting the development of an ethane cracker and downstream industries will require a volume of workers and a myriad of skill sets that may not all be present in the Ohio River Basin," Witt wrote in the study. "Thus, significant workforce training programs will also be needed to be effective. It will take a strong commitment from government, industry, unions, and the public to develop the workforce and attract the vendors needed to develop, build, and operate a petrochemical cluster."

    Successfully kick-starting an expanded petrochemical sector and manufacturing industry in the region requires a long-term commitment, Witt said.

    "What the region lacks is a unifying strategy for focusing these disparate private sector developments on establishing a high-value local market for [natural gas liquids] products in the form of a regional petrochemical manufacturing hub," the study states. "Working together, West Virginia's government and workforce can partner with the business community to invest in the growth of an entire petrochemical industry in the mid-and upper-Ohio valleys."

    RECOMMENDED FOR YOU
    GM, Stellantis give $15 million lifeline to insolvent supplier
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Treaty talks stumble on debate over resin production cap
    2
    Target, Walmart cut from bag drop-off site directory following report
    3
    Plastics treaty talks bring industry leaders to Paris
    4
    Material Insights: Commodity resins move in opposite directions
    5
    Resin Prices
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
          • 2023 winners
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Bioplastics Live
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified