The demand for natural gas has grown exponentially over the past decades, and it does not look to be slowing down any time soon. In fact, natural gas production is forecast to increase by 44% by 2040. The current pipeline system does not have the capacity to transport the current production rate, let alone any large increase. The Rover pipeline will gather gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania for delivery to hungry markets in Midwest Hub near Defiance, Ohio, where roughly 68 percent of the gas will be delivered via interconnects with existing pipelines in Ohio and West Virginia for distribution to markets across the U.S.
This infrastructure will provide a reliable and abundant supply of low-cost natural gas to the United States. A substantial amount of this energy will go to consumers in Michigan and Ohio, which today are largely dependent upon out-of-state production to meet their supply needs. Project development will also provide a welcomed economic boost to the region. Construction alone will provide over 10,000 new jobs, a large portion of which are dedicated to union labor. The states would collect an estimated $147 million in property tax revenue, as well. Clearly, the Rover Pipeline would provide the economic stimulus the hard-working people of Pennsylvania, West Virginia, Ohio and Michigan deserve.
Energy Transfer makes it a policy to buy American made products whenever possible, and this pipeline project will be no exception. Almost 80% of the Rover pipe is being made in the U.S. Contractors are also purchasing valve actuators, flanges and fittings and its compressors from Ohio manufacturers. Overall, the equipment and more than $1 billion in goods will be purchased from U.S. manufactures.
It has been widely reported that without new pipelines to transport natural gas to hungry markets, we will see a slowdown in the natural gas industry. This would lead to a decrease in business investment, job layoffs and a reduction in tax revenues. That is why it is critical that elected officials and decision makers prioritize energy infrastructure in our region and support the expansion existing natural gas pipeline capacity.
As a $4.2 billion investment in the region, The Rover Pipeline will provide an opportunity to put thousands of local laborers to work and help millions of Americans gain access to affordable, reliable, environmentally responsible and domestically-produced energy. The benefits associated with Rover are exactly why elected officials work so hard to develop strategies for safe and responsible pipeline development that will bring resources to markets throughout the region. Please support the Rover Pipeline and encourage the completion of this project without delay.