Market Overview

Appalachia Development Group Announces Engineering, Procurement and Construction Partner for Appalachia Storage and Trading Hub


Appalachia Development Group, LLC, (ADG) today announced that it has
selected Parsons Corporation as its engineering, procurement and
construction (EPC) partner for the safe, effective and efficient
buildout of the Appalachia Storage and Trading Hub (ASTH). Parsons will
initially focus on the Pre-FEED and FEED (front end engineering and
design), including project management and execution planning. Subsequent
phases include the construction of the $3.4 billion project and its
long-term operation.

The ASTH is a proposed regional underground storage facility for highly
valuable natural gas liquids and intermediates.

As a built-for-purpose facility, the ASTH enables significant benefits
in commercial activity and job creation in the region. According to the
American Chemistry Council, the development of the ASTH would serve as a
catalyst for the creation of an estimated $36 billion in follow-on
petrochemical investments and more than 100,000 new long-term jobs. It
will increase the probability of American energy dominance by releasing
the potential of the Marcellus, Utica and Rogersville Shale methane
deposits for both domestic consumption and international consumption by
America's allies.1

"After a rigorous review process of some of the most widely known and
respected EPC companies in the country, we are pleased to announce the
selection of Parsons as our EPC partner," said Steven B. Hedrick,
President & CEO, ADG. "Parsons has proven and successful experience with
complex infrastructure projects. I have confidence in Parsons's ability
to support the development and completion of the Hub safely, effectively
and efficiently."

"Parsons is honored to have been selected by ADG as a partner on this
critically important project that will ultimately support the economic
and energy security needs of so many communities and citizens, including
economic revitalization of the Ohio River Valley states," said Carey
Smith, President of Parsons federal business unit.

"Identifying and selecting an EPC partner is a significant milestone in
our progress to develop the Hub," Hedrick continued. "We look forward to
our partnership with Parsons and to keeping the public updated on our

On January 3, 2018, ADG announced that based on the merits of its Part I
Application, it had advanced to the next phase to submit a Part II
Application for a loan guarantee under the U.S. Department of Energy
(DOE) Title XVII Loan Guarantee Program. The application is for a $1.9
billion loan guarantee from the DOE to support the development of
infrastructure for the Appalachia Storage and Trading Hub. ADG is
working closely with the DOE on Part II of the application process while
simultaneously working to secure $1.4 billion in equity investment.

About Appalachia Development Group, LLC
ADG was formed as a
collaborative platform to deliver the Appalachia Storage and Trading
Hub, considered to be a catalyst for industrial development within the
Appalachian region and associated with the utilization of the prolific
shale wet-gas gas deposits in the Marcellus, Utica and Rogersville

About Parsons Corporation
Parsons is a digitally enabled
solutions provider focused on the defense, security, and infrastructure
markets. With nearly 75 years of experience, Parsons is uniquely
qualified to deliver cyber-physical security, advanced technology
solutions, and other innovative services to federal, regional, and local
government agencies, as well as to private industrial customers
worldwide. For over seven decades, Parsons has been a trusted partner on
over 700 oil and gas infrastructure projects.


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