Friday, February 09, 2018

China Bankrolls Appalachian Petrochemical Hub

Over the past year, oil and gas industry plans to build a petrochemical refining and storage hub along the Ohio River have steadily gained traction. Proponents hope this potential hub, which would straddle Pennsylvania, Ohio, West Virginia, and Kentucky, could someday rival the industrial corridor found along the Gulf Coast in Texas and Louisiana. China Energy Investment Corp. announced the signing of a memorandum of understanding (MOU) to invest $83.7 billion into the planned storage hub over 20 years. For comparison, West Virginia's gross domestic product (GDP) in 2016 was $72.9 billion. Detractors of the planned petrochemical hub believe that its construction would buoy the oil and gas industry in its efforts to further develop drilling and hydraulic fracturing ("fracking") projects in Pennsylvania's Marcellus Shale and Ohio's Utica Shale basins. Products and profits will accrue overseas while environmental destruction will remain in Appalacia.

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A corporation named the Appalachia Development Group (ADG), which is owned by the Mid-Atlantic Technology, Research and Innovation Center (MATRIC) and the West Virginia University Innovation Corporation. The joint venture registered its website on November 10, one day after West Virginia signed the MOU with the China Energy Investment Corp. On January 3, ADG received an invitation from the U.S. Department of Energy to apply for a $1.9 billion loan guarantee created by the Energy Policy Act of 2005. That law exempts the oil and gas industry from U.S. Environmental Protection Agency enforcement of the Safe Drinking Water Act during horizontal drilling and fracking operations. Presently the US has more investments overseas than foreign domestic investors. But with the rise of Chinese manufacturing that is certain to change.

Comments

How do you say "Mr. Peabody's Coal Train" in Mandarin?

#1 | Posted by snoofy at 2018-02-09 05:12 PM

I guess this is Clinton's fault, too; after all, she once traveled through Appalachia.

#2 | Posted by e1g1 at 2018-02-09 09:58 PM

Snoofy:
屁身体先生的煤炭火车

#3 | Posted by e1g1 at 2018-02-09 10:01 PM

Hey, why not sell off American infrastructure to Chinse owners. We need legislation to put an end to this type of foreign investment once and for all. We have plenty of billionaires who could remember their nation and finance this and keep it owned by Americans.
America needs to remember Ireland, and why there are so many millions of Irish descendants here in America. The Irish allowed British overlords buy their country out from under them, don't say it can't happen here.

#4 | Posted by danni at 2018-02-10 11:32 AM

I guess this is Clinton's fault, too; after all, she once traveled through Appalachia. - #2 | Posted by e1g1 at 2018-02-09 09:58 PM
Just not during campaign season, though?

#5 | Posted by Avigdore at 2018-02-10 01:44 PM

Low dollar. Come one world, buy America.

#6 | Posted by BruceBanner at 2018-02-10 07:55 PM

Wow! This is way bigger and much finer than Governor Scott "Turdwaffle" Walker's fantasy about Foxconn for Southeast Wisconsin!

money.cnn.com

I, for one, want to go on record as welcoming our Chinese overlords!

#7 | Posted by john47 at 2018-02-12 08:02 AM

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