An IHS Markit study on the “Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing” was released this past March.
The study covers the natural gas resources in Pennsylvania, highlighting steady economic returns that have come from the abundant local stock of Natural Gas Liquids (NGL) from the Utica and Marcellus Shale plays in Pennsylvania over the last decade. In the study, IHS Markit underscores that “the Marcellus and Utica Shale plays’ contribution to the total US natural gas supply is expected to increase from approximately 25% in 2015 to more than 40% by 2030.”
According to the study, it is in the best interest of Pennsylvania that NGL utilization be expanded to capitalize on the potential economic benefits. This 2017 IHS study supports the findings of the 2015 Delaware County IHS study, which found that “the significant increase in natural gas liquids coming from the Marcellus and Utica Shale regions – transported by Sunoco Logistics Mariner East pipeline – is rapidly expanding downstream opportunities.” Furthermore, the breadth of shale-gas available to the U.S. chemical industry at low prices has effectively provided a competitive edge to U.S. engagement in “chemical derivate markets that use natural gas and/or natural gas liquids (NGLs) as a feedstock.”
With these developments at the Marcellus and Utica Shale plays, NGL supply heralds increased economic growth across Pennsylvanian power generation, transportation, export and manufacturing capacity. The Mariner East projects recognize this potential and forecast to generate $4.2 billion for the Pennsylvanian economy, while transporting ethane and propane from the Marcellus Shale regions.
The analysis goes on to detail economic opportunities predicated on the projected growth of NGL and natural gas production in the Utica and Marcellus Shale plays, concluding “that there will be a significant potential for driving economic development and job creation across the state thanks to a variety of existing and future competitive advantages.”
Harboring pro-growth economic benefits and employment opportunities across the state, the Mariner East projects tap into local NGL potential and forecast local benefits.