Given the large number of pipelines that have been built in the past decade to transport natural gas and liquids from the Marcellus and Utica shales to other parts of the country, specifically the Gulf Coast end-use markets and the large Northeast power generation markets, you might think there’s not much of a local market for this production. You would be wrong.
There is a total of 29 gas-fired power plants with a minimum of 475 megawatts of capacity that have either been recently built or are under construction in Pennsylvania, Ohio and West Virginia. These facilities are supporting a total of 17,800 jobs during construction, approximately $25.4 billion in total investment, and 26,000 MW of total capacity, according to a recent report from Energy In Depth titled “Natural Gas Power Plants Bring Major Investment, Jobs to the Appalachian Basin.”
Pennsylvania is experiencing the most growth with 16 total plants built or under construction at a total cost of about $14 billion, which is helping to create 8,700 jobs during construction. Ohio is close behind with 10 facilities being built at a cost of $9.1 billion with 7,200 jobs created during construction. There are only three new gas-fired plants planned in West Virginia, but they represent a total of $2.3 billion in investment and 1,900 jobs during the construction process.
Not only are these facilities creating new jobs, they’re also helping to improve the air quality in these regions by replacing coal-fired plants. Data from the U.S. Energy Information Administration (EIA) shows that the Appalachian Basin was responsible for 18% of the country’s entire carbon emissions from 2005 to 2015 with Ohio having the largest emission reductions of any state during that time.
That’s pretty substantial given that U.S. greenhouse gas emissions reached a 25-year low in 2017. Many of these reductions, especially in the Appalachian Basin, are directly related to the switch to natural gas for electric generation. According to the report, the percentage of gas-fired power generation in this region increased from 0.3% to almost 22% from 2005 to 2015.
In addition to the health benefits, the switch to gas-fired electric generation is also helping citizens in the region save money. According to the Business Council for Sustainable Energy’s (BCSE) 2018 Sustainable Energy in America Factbook, the average American family spent just 4% of its total household income on energy in 2017. Electricity represented just 1.3% of the average American’s personal consumption expenditures. These low figures are a direct result of affordable and plentiful natural gas.
Natural gas was the No. 1 energy source for electricity in 2017 with about 32% of the power generation mix, according to the BCSE report. This was down slightly from 34% in 2016. This drop was due in part to the recovery of gas prices. However, natural gas should remain the fuel of choice for power generation for years to come based on the number of power plant projects and reserve levels.
Some of these projects include the 1.48 MW Lackawanna Energy Center in Jessup, Pa., which cost $1 billion to build and began operations on June 1. This facility features three gas-powered turbines, three heat recovery steam generators and a steam turbine.
The 1.06 MW Panda Hummel Station in Snyder County, Pa., is one of the largest coal-to-natural gas power replacement projects in the country. This new power plant came online in June and uses 97% less water than the former Sunbury coal-fired power plant that the site housed.
The $1.1 billion CPV Fairview power plant in Jackson Township, Pa., is scheduled to be completed in December 2019 and will generate 1.05 MW. The plant will be operated by NAES Corp. and feature two combustion turbines, two heat recovery steam generators and one steam turbine.
Though Pennsylvania has the bulk of the new gas power plants in the Appalachian Basin, Ohio isn’t lagging too far behind. The 1.18 MW South Field Energy power plant is being built in Columbiana, Ohio, for an estimated $1.3 billion. This combined-cycle plant is expected to complete construction in second-quarter 2021.
The Buckeye State will also house the largest gas-fired power plants in the country when the $1.4 billion Guernsey (OH) Power Station comes online in 2022. The 1.65 MW power plant will power homes throughout the Appalachian Basin, including West Virginia and Pennsylvania.
West Virginia may only have three power plants in development, but they represent a total of nearly $2.3 billion in investments. The largest of these projects is the Brooke County (W.Va.) Power plant, which is estimated to cost $800 million and have a capacity of 830 MW. The project is estimated to have an annual economic impact of $440.5 million.
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