Pasadena’s Parsons Selected as Engineering Partner for $3.4 Billion Appalachia Underground Storage Facility

Published : Monday, September 10, 2018 | 5:08 AM

Image credit: Parsons

Pasadena-based engineering giant Parsons Corporation has been selected as the engineering, procurement and construction partner of Appalachia Development Group, based in Charleston, Virginia, for $3.4 billion build-out of the proposed Appalachia Storage and Trading Hub, a regional underground storage facility for highly valuable natural gas liquids and intermediates.

Under the agreement with the Group, Parsons will initially focus on the project’s front-end engineering and design, including project management and execution planning, according to an Appalachia Development Group statement.

Subsequently, Parsons will build and operate the project.

“After a rigorous review process of some of the most widely known and respected EPC (engineering, procurement and construction) companies in the country, we are pleased to announce the selection of Parsons as our EPC partner,” Steven B. Hedrick, ADG President and CEO, said in a company statement. “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.”

Carey Smith, President of Parsons’ federal business unit, said the Pasadena corporation is honored to have been selected 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.”

The ASTH, as a built-for-purpose facility, is expected to bring significant commercial activity and creates jobs in the Appalachian region. A statement from the American Chemistry Council said the project would serve as a catalyst for an estimated $36 billion in follow-on petrochemical investments and more than 100,000 new long-term jobs.

The ASTH is also expected to 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, the ADG statement said.

Early this year, ADG said it has applied for a $1.9 billion loan guarantee with the U.S. Department of Energy to support the development of infrastructure for the ASTH. The company said it continues to work to secure some $1.4 billion in equity investment for the project.

Parsons Corporation, whose headquarters are at 100 W. Walnut Street in Pasadena, has nearly 75 years of experience serving federal, regional and local government agencies, focusing on the defense, security and infrastructure markets. The company is qualified to deliver cyber-physical security, advanced technology solutions, and other innovative services to customers, which includes private industries worldwide.

For over seven decades, Parsons has been a trusted partner on over 700 oil and gas infrastructure projects.

To learn more about Parsons Corporation, visit

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