China Energy Investment Corp. plans to invest $83.7 billion in shale gas development and chemical manufacturing projects in West Virginia over two decades, according to a statement from the state’s Department of Commerce.
The memorandum of understanding marks the first step in a series of commitments the company expects to make in West Virginia. These include power generation, chemical manufacturing and underground storage of natural gas liquids derivatives. The size of the proposed investment is larger than the state’s gross domestic product last year of $73.4 billion.
“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,” U.S. Senator Shelley Moore Capito, a West Virginia Republican, said in the statement.
“At the end of the day what really counts is contracts,” Jason Feer, head of business intelligence at Poten & Partners Inc. in Houston, said in a phone interview Wednesday. “An MoU is usually an agreement to continue talking.”
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