New Study Says Petchem Investment in M-U Better than Gulf Coast

This week representatives from Shale Crescent USA are in Houston, TX attending the 33rd Annual World Petrochemical Conference–and they have in hand a dynamite study that shows it’s more cost effective to build a petrochemical plant in the Marcellus/Utica region than it is along the Gulf Coast. Which is heresy if you live along the Gulf Coast. “Benefits, Risks, and Estimated Project Cash Flows: Ethylene Project Located in the Shale Crescent USA versus the US Gulf Coast” is an independent report by IHS Markit commissioned by Shale Crescent USA to evaluate and compare the financial returns and risks of a major petrochemical and plastics investment in the region with an identical investment in the US Gulf Coast. The numbers don’t lie. Here’s one juicy statistic from the newly released study: ethane (the feedstock used to make raw plastics) in our region costs 32% less than it does in the Gulf Coast region. One more factoid from the report: If the Marcellus/Utica were its own country, it would be the #3 natural gas producing country, IN THE WORLD! Our region produces more natural gas than the countries of Saudi Arabia, Iran and Qatar. Last year the Shale Crescent folks were the new kids at the World Petrochemical Conference. They were just about laughed out of the event. We have a feeling this year is going to be a lot different…

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