Seeking Alpha

Shell expresses both optimism, caution on future of Pennsylvania plant

  • Royal Dutch Shell (RDS.A, RDS.B) says its plan to build a huge new petrochemical plant in western Pennsylvania is making progress, but there’s still no guarantee the project actually will be constructed.
  • Shell has an option to purchase a 300-acre industrial site on the Ohio River, and demolition of a zinc factory there has begun, but a Shell exec says that doesn’t necessarily mean the ethane cracker plant will be built; in other states, such as Colorado, Shell invested tens of millions of dollars in proposed projects before deciding to shut them down.
  • Shell says it has signed long-term contracts with ~10 energy companies to supply the proposed plant which would convert ethane from Marcellus and Utica shale oil and gas into more profitable chemicals.
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Comments (1)
  • smurf
    , contributor
    Comments (4591) | Send Message
     
    I understand the reason for the geography; shale fields, river access for feedstocks, etc., but Pennsylvania, aka union heaven? Ask VW how that state worked out for them.

     

    Wouldn't W.Va. have presented a slightly more favorable business climate yet with the above advantages?
    17 Apr 2014, 11:16 AM Reply Like
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