West Virginia's shale gas business is getting an $83 billion investment from the world's largest power company, China Energy, according to a new report by The Washington Times.
"Expanding Appalachia's energy infrastructure, including developing a regional storage hub and market for natural gas liquids, will have a transformative effect on our economy, our security, and our future," Sen. Shelley Moore Capito, West Virginia Republican, said in a statement responding to news of the investment. "From driving growth and creating jobs to maximizing America's energy potential, the benefits for West Virginia and the country from this new investment will be significant and long-lasting."
Earlier this year, China has approved the merger between its biggest coal producer Shenhua Group Corp, and one of the top five state power companies, China Guodian Corp, in a deal that would create the world's largest power company by installed capacity and with assets worth $271 billion. That company is now called China Energy.
West Virginia has also approved several infrastructural upgrades that will facilitate the transportation of shale gas in the state to nearby processing facilities. The U.S. Federal Energy Regulatory approved the Atlantic Coast and Mountain Valley pipeline projects on last month. The Dominion Energy's Atlantic Coast pipeline project will run from West Virginia to North Carolina, taking Marcellus Shale gas to the Southeast. EQT Midstream Partners' Mountain Valley pipeline will run from West Virginia to Virginia. Both projects are highly controversial and still need state permits.
Pipelines are very desirable for both drilling companies and processors as they eliminate expensive freight costs that are currently flooding the nation's railways, a shortage that is also damaging commodities as producers of everything from coal to pork bellies are waiting longer for freight train cars.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on… More
Comments
China will reap the profit as our natural resources are sold overseas. As the shale fields deplete, so will the jobs. All that will be left will be the mess.