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Antero to Supply Ethane for W.Va. Cracker Plant
YOUNGSTOWN, Ohio -- Antero Resources has signed an agreement to become the anchor ethane supplier for the proposed Ascent petrochemical complex in Wood County, W.Va.
Under the agreement, announced Wednesday, Antero would provide 30,000 barrels per day of ethane to Ascent, which represents almost half of the volume required to operate the cracker planned for the Parkersburg site.
Ascent -- the acronym for Appalachian Shale Cracker Enterprise -- announced in November (READ STORY) that it's exploring the feasibility of the project, which is a joint venture formed by two Brazilian companies, Odebrech and Braskem.
In January Odebrech purchased the land proposed for the cracker plant.
Antero, based in Denver, cautioned in its announcement that the ethane supply agreement "is contingent upon Ascent reaching a final investment decision once the multi-year feasibility analysis is completed and a construction decision has been made."
Gov. Earl Ray Tomblin is quoted in published reports as saying construction could begin by the first quarter of 2015. “It is my understanding that there is a team on the ground, here in West Virginia from Odebrecht,” he told reporters (READ STORY).
The CEO of Antero, Paul Rady, said in a prepared statement that his company’s supply agreement with Odebrecht and Braskem “[helps] position Ascent as a catalyst for regional economic development."
The ethane would be used by Ascent to manufacture polyethylene, one of the key resins used in the production of plastics products.
"This announcement is exciting news for West Virginia and others in the industry must take note and follow Antero's lead,” Gov. Tomblin said in a statement distributed by Antero.
“While we recognize there is still work ahead to bring [the project] to fruition, today's announcement is a major step forward," he said. "By utilizing the ethane produced in West Virginia here at home, we can revitalize our manufacturing industry for decades to come -- bringing thousands of new jobs and billions of dollars in investments to the Mountain State."
Published by The Business Journal, Youngstown, Ohio.
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