Tri-State Shale Coalition: Shale & Downstream Development Utica Summit, Canton, OH October 11, 2017 Paul Boulier Vice President, Industry & Innovation Team NEO
Shale Gas Yields Many Products Power Consumer Products Medical Devices Packaging NGLs Ethane Propane Butane Pentane C5+ Injection Molding, Extrusion, Blow Molding, etc. Chemicals, Plastics, Rubber Further Processing Fuel (CNG, LPG, LNG*) *CNG, compressed Natural Gas (methane), ~3,000psig LNG, Liquified Natural Gas (methane), (-260F, liquid) LPG, mix of gases (propane, butane, propylene, butylene, etc.) Export (LNG, ethane) Adhesives Paints & Coatings Household Cleaners 2
Why Shale & Downstream Development is Important Fuel & Power Consumption, Chemical Industry, by Source, 2015 Share of Total Energy Consumption, Chemical Industry, by Segment Local, Plentiful, Reliable, Globally-Cost-Competitive energy sources and feedstock provides Competitive Advantage
NGLs & Downstream Shale Value Chain Our region s shale opportunity comes by making this manufacturing value chain more globally competitive Infrastructure Build >$179B Nationally* >$22B Nationally** Positioning, Scaleup, Buildout 4 *American Chemistry Council, investments since 2010 (includes ~$25B for resins) *ACC, investments since 2012, >400 projects, Compounding & Plastic Products
Build Out of Shale & Downstream has Tremendous Upside for our Region* * The Potential Benefits of an Appalachian Petrochemical Industry, American Chemistry Council, May, 2017
Ohio s Shale Value Chain Buildout 2011-2016* ~ $51B Total Estimated Investment, Upstream, 38 Midstream, 8 Downstream, 4 (Downstream does not include potential Shell or PTTGC Investments), or other Petchem or Plastics Converter expansions) * From CSU/YSU study for JobsOhio, Shale Investment Dashboard in Ohio, May 2017)
Tri-State Shale Coalition (TSSC) Founding Members/Steering Team and Core Team Team NEO, APEG, JobsOhio Benedum Foundation, Pittsburgh Reg. Alliance/Allegh. Conf., PA DCED VisionShared/WV Dept. of Commerce Single Point of contact with each Governor s office Governors Cooperation Agreement and TSSC Summit I (10/15) Four Streams: Transportation & Infrastructure, Marketing, Workforce, Research/Innovation/Commercialization Facilitated Appalachian Storage Hub Study Collaboration between OH, PA, WV Geological Surveys-completed 7/17 Identified three strong areas with ethane storage potential
Petrochemical & Downstream Manufacturers within 400 Miles: 17,477 Companies 250 Large Chemical Companies: Ohio ~180 PA ~ 50 WV ~ 20 Chemical Manufacturers (purple):6,371 Companies Rubber Mfg. & Conv. (brown): 1,812 Companies Plastic Converters (blue): 8,147 Companies Plastics Mfg. (green): 1,147 Companies
Petrochemical & Downstream Manufacturers within 400 Miles: 17,477 Companies 250 Large* Chemical Companies: Ohio ~180 PA ~ 50 WV ~ 20 Chemical Manufacturers (purple):6,371 Companies Rubber Mfg. & Conv. (brown): 1,812 Companies Plastic Converters (blue): 8,147 Companies Plastics Mfg. (green): 1,147 Companies *Large Company=>100 employees
Most Attractive Regions From A Geological Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids, 7/31/17
TSSC (continued) Marketing the Region Presentations on Tri-State s Value Proposition at numerous venues in/ out of our Region (Nationally and Internationally) Outreach to Industry and Trade Associations and Economic Dev. K Fair, American Chemistry Council, NE US & Canada Petchem Conference, International Elastomer Conference Energy & Downstream Intelligence Report in Site Selector Magazine (Jan. 2018) Negotiating an approach/funding to market (Brand) the region Research/Innovation/Commercialization Developing agreement/mou between Universities to cooperate and help position and promote their Applied Research capabilities Workforce Collaboration on ManufactureNet concept and coordination of training and development in anticipation of Shell ethylene/pe and other Midstream and Downstream assets TSSC Summit III, November 29th, Stark State, Canton