Pennsylvania Independent Oil & Gas Association President and Executive Director Louis D. D’Amico today issued the following statement regarding Royal Dutch Shell’s announcement that the company will construct an ethane cracker facility in Potter Township, Beaver County:

“The decision by Shell to build this state-of-the-industry facility in Beaver County will have huge long-term benefits for our entire region, and is good news for the natural gas industry and great news for Pennsylvania’s economy.  This plant will attract manufacturers in the plastics and consumer goods sectors that will convert polyethylene into thousands of products we use every day and provide good jobs to thousands of people.  This announcement is further evidence that natural gas production from shale in the Appalachian Basin is going to drive positive change for our the future of our nation.  PIOGA looks forward to working with Shell and elected officials in southwestern Pennsylvania to capitalize on the opportunities created by the construction of this facility.”

Shell’s June 7 news release:

Shell takes final investment decision to build a new petrochemicals complex in Pennsylvania

Shell Chemical Appalachia LLC (Shell) has taken the final investment decision to build a major petrochemical complex, comprising an ethylene cracker with polyethylene derivatives unit, near Pittsburgh, Pennsylvania, USA. Main construction will start in approximately 18 months, with commercial production expected to begin early in the next decade.

The complex will use low-cost ethane from shale gas producers in the Marcellus and Utica basins to produce 1.6 million tonnes of polyethylene per year. Polyethylene is used in many products, from food packaging and containers to automotive components.

The facility will be built on the banks of the Ohio River in Potter Township, Beaver County, about 30 miles north-west of Pittsburgh. As a result of its close proximity to gas feedstock, the complex, and its customers, will benefit from shorter and more dependable supply chains, compared to supply from the Gulf Coast. The location is also ideal because more than 70% of North American polyethylene customers are within a 700-mile radius of Pittsburgh.

The project will bring new growth and jobs to the region, with up to 6,000 construction workers involved in building the new facility, and an expected 600 permanent employees when completed.

“Shell Chemicals has recently announced final investment decisions to expand alpha olefins production at our Geismar site in Louisiana and, with our partner CNOOC in China, to add a world-scale ethylene cracker with derivative units to our existing complex there,” said Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global Chemicals business. “This third announcement demonstrates the growth of Shell in chemicals and strengthens our competitive advantage.”