Shell's planned Pennsylvania ethane plant remains in limbo

|By:, SA News Editor

The location of Shell's (RDS.A, RDS.B) proposed multi-billion-dollar petrochemical plant near Philadelphia continues to sit vacant, despite nearly $2B in state tax incentives, and analysts wonder whether new pipelines envisioned to move Pennsylvania ethane to the Gulf coast could erase Shell's advantage and torpedo its plans entirely.

Since Shell proposed its plant, three pipeline projects that would channel Marcellus Shale ethane southward have been announced: Kinder Morgan Partners (KMP), Enterprise Products Partners (EPD) and Williams Partners (WPZ) have said they will build lines carrying 600K bbl/day of ethane and other liquids from the Marcellus down to Texas and Louisiana.