Pennsylvania's Department of Environmental Protection (DEP) has approved a permit allowing Shell Chemical LP to proceed with its plan to build a petrochemical complex in Beaver County, Pa., that will produce ethylene and polyethylene (PE) from Marcellus shale ethane.
Shell Chemical spokesman Michael Marr told OGJ via e-mail that the approval will allow Shell to proceed with preliminary site development, but that the company has yet to make a final decision on the project.
"We will make that decision when our full project evaluation is complete," Marr said.
Meanwhile, it appears that a similar plant proposed by two Brazilian companies for West Virginia has been put on hold.
Construction firm Odebrecht SA and petrochemical company Braskem SA, both of Sao Paulo, told the Wall Street Journal in April that more analysis under various scenarios was needed before a final project decision could be made.
UOGR was unable to get the Odebrecht Houston office to comment or elaborate on the status of the proposed Appalachian Shale Cracker Enterprise, which would be based in Parkersburg, W. Va., if the companies proceed with their plans.
Bentek Energy analyst Maria Mejia said the advantage of crackers using ethane from Appalachia has lost some appeal as oil prices declined. Lower oil prices make plants using ethane appear less economic when compared with crackers that use naphtha from crude oil.
Thailand's PTT Global Chemical and Marubeni Corp. of Japan recently confirmed a site in Belmont County, Ohio, was the finalist for possible construction of an ethane cracker that would process gas from the Utica and Marcellus shale plays. The site is a former power plant in Mead township (UOGR May/June 2015, p. 15).
Shell's plans for Pennsylvania
DEP's approved Shell Chemical Appalachia LLC's air quality plan permit for the ethane cracker project on June 18, according to documents posted to the agency's web site. The plan approval, which allows construction and temporary operation of the petrochemical complex, expires June 18, 2019.
Shell initially planned a 24-month construction period that would begin late in 2015, with plant start-up scheduled for some time during 2018.
First announced in June 2011, Shell's Appalachian petrochemical complex would include an ethane cracker with an average ethylene production capacity of about 1.5 million tonne/year, three PE units with a combined production of 1.6 million tpy, as well as associated installations for power and steam generation, storage, logistics, cooling water and water treatment, emergency flare, and offices.
Feedstock for the proposed complex likely would be supplied by Shell's holdings in the Marcellus and Utica shale regions (OGJ Online, Sept. 3, 2014; Aug. 14, 2014).
