Shell Cracker Still Working Through Problems During Break-In Period
It hasn’t been a problem-free startup for the mighty Shell ethane cracker plant in Monaca (Beaver County), PA, now called the Shell Polymers Monaca facility. We’ve noted some of the more prominent issues as we’ve spotted them in the news. Things like the plant exceeding allowed air emissions (see PA DEP Issues Violation to Shell Cracker for Exceeding Air Emissions) and flaring at the plant causing the sky to turn orange at night (see Shell Cracker Plant has Flaring Episode – Skyline Turns Orange). Little did we know, but there were over 40 “malfunctions” last year that Shell was required to report to the Pennsylvania Dept. of Environmental Protection (DEP). What we also didn’t know is that 40 such episodes during startup are typical for a big plant like the Shell Polymers Monaca.
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Last Thursday, the Pennsylvania Commonwealth Court dismissed the Dept. of Environmental Protection’s (DEP) claim that the Regional Greenhouse Gas Initiative (RGGI), an obscene carbon tax on gas-fired power plants being forced on PA businesses (and electricity consumers) by former Gov. Tom Wolf and his henchman DEP Secretary Pat McDonnell, was unlawfully delayed by the PA Senate. It is a good news/bad news decision.
On January 18, every single Republican member of the Pennsylvania State Senate signed (and sent) a joint letter to newly-minted Gov. Josh Shapiro urging him to take steps “immediately” to undo PA’s entrance into the insane Regional Greenhouse Gas Initiative (RGGI) carbon tax, a plan forced on the state by Shapiro’s wacky predecessor Tom Wolf. During the campaign, Shapiro prevaricated on whether or not he would pull PA’s plan to enter RGGI.
In what has become something of a parlor game, we have yet another prediction about when the 2 Bcf/d Freeport LNG export terminal, located in Quintana Island, Texas, will return to service. Freeport has been offline since June 2022, when the plant experienced an explosion and subsequent fire (see 
Do you remember studying Prohibition in grade school? In the United States, from 1920 to 1933, a nationwide constitutional law prohibited the production, importation, transportation, and sale of alcoholic beverages. A bunch of ninny nannies thought they knew better than everyone else whether or not anyone should consume adult beverages. The ninny nannies eventually got enough politicians to vote in favor of the 18th Amendment to the Constitution. The 21st Amendment, passed some 13 years later, repealed the 18th Amendment. A modern-day version of the same thing is now happening, with cities (and some states, like New York) attempting to ban natural gas stoves, based on false claims that gas stoves are a health hazard. Just like alcohol was a health hazard 100 years ago?
Zooming out for a broader view of issues around the world that affect the natural gas market here in the U.S. is helpful from time to time. What’s happening in Europe right now, and how will that affect our gas market in 2023? How about China? Is supply/demand in balance, and how does that affect the Henry Hub price? And what about LNG? Rigzone looks at six things the natural gas market can expect in 2023. Their insights give us an interesting view of what the year may hold for natgas.
MARCELLUS/UTICA REGION: Businesses, groups tell lawmakers PA regulatory burden, high energy costs must be lowered; NATIONAL: Investors plow into renewables, but projects aren’t getting built; INTERNATIONAL: Iran oil gushes into global market; U.S. LNG, underground storage help save Europe from another tough winter; Rhetoric from Davos dominated the week in energy; 185 global ports can bunker LNG.