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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Cracker Makes Progress; Biggest Problem So Far? Parking
March 10, 2017March 10, 2017

Jim Sewell, the Environmental Manager for the Shell ethane cracker project being built in Beaver County, PA, recently gave an update on the project to members of the Ohio Valley Oil and Gas Association. Sewell spoke about the reason Shell chose the Monaca site. He also gave an update on progress at the site. The biggest problem they’re trying to solve right now? Parking for workers…
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Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Lawrence County | Pennsylvania | Processing Plants | Shell

Lawrence County Campaigns to Lure Cracker-Related Businesses
March 9, 2017March 9, 2017

Lawrence County, PA

The leaders of Lawrence County, PA are clever. After five years of crunching numbers, in June 2016 Shell finally committed to building a multi-billion dollar ethane cracker plant complex in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Since that time it’s pretty much been full speed ahead. The site is now cleared, extra roads and bridges have been built to handle truck traffic, and by July, two new cement plants will be in place to produce the enormous amounts of concrete needed to build the facility (see Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up). From the start, this has always been a “regional” story because the cracker, while it’s getting built and after it’s built, will stoke economic activity in the way of jobs and business throughout southwestern PA, eastern OH and into WV’s northern panhandle. But knowing there’s a great opportunity and wishing/hoping some it will come your way is not enough. That’s what the smart leaders of Lawrence County (shares its southern border with Beaver County) know. Earlier this week Lawrence County launched a major effort to attract businesses to the county–businesses that are interested in supplying good and services too, or receiving raw plastics from, the Shell ethane cracker…
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Beaver County | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Supply Chain

Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up
March 8, 2017March 8, 2017

One of our fun pastimes is speculating about when, exactly, the mighty Shell ethane cracker in Beaver County, PA will actually go online. In February, Shell CEO Ben van Beurden said this: “We haven’t announced exactly when it will start up, but expect that to be not anymore this decade” (see Shell CEO Says PA Cracker Up & Running “Not Anymore This Decade”). What did the non-native English-speaking van Beurden mean? Your guess is as good as ours. Did he mean “by the end of this decade,” or “not by the end of this decade”? Our best guess is that the cracker won’t be operating until 2020 or 2021–that is, the latter meaning. We have some evidence to support that theory. Two concrete plants are due to begin construction any day now, being built by Champion Concrete. The two plants, which will manufacture all of the concrete used in the cracker, are scheduled to be completed and in operation by July. So concrete for the project begins to flow in July. The useful life of the two plants (for manufacturing concrete for the cracker) is three years. Three years from this summer will be the summer of 2020. Important note to supply chain businesses: as the concrete plants and construction activity ramps up, there’s opportunity to sell more of your goods and services to this enormous project. The number of workers at the site will steadily increase this year and next…
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CNG/LNG | Energy Companies | Industrywide Issues | Research | Shell

Shell Launches LNG Outlook 2017 – Rapid Growth Ahead
February 21, 2017February 21, 2017

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On Monday, Shell launched its first-ever “LNG Outlook,” an assessment of the global liquefied natural gas (LNG) market. Shell, you may recall, purchased BG in 2016 (announced in 2015), the largest such deal (at $69.7 billion) since Exxon bought Mobil and merged it in. The reason for the purchase? LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). According to the outlook released by Shell yesterday, global demand for unliquefied natural gas is expected to increase by 2% a year between 2015 and 2030, while LNG demand will rise at twice that rate–4 to 5% per year. The outlook says that while many expected a big increase in new LNG supplies that would outpace demand in 2016, something unexpected happened. Demand for LNG kept pace with supply due to a spike in demand coming from Asia and the Middle East. Two of the fastest growing buyers are China and India, growing their imports at a steep clip. Add to that, six new countries began importing LNG last year: Colombia, Egypt, Jamaica, Jordan, Pakistan and Poland. What it all spells is that even with more LNG supplies coming online in the U.S. (and other countries, like Australia), the demand is there to sop up the supply. Here’s the Shell LNG Outlook, first edition…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Important Shell Ethane Cracker Webinar on Feb 27
February 15, 2017February 15, 2017

We want to alert you to an upcoming webinar that will be worth your time. On Feb. 27 at 2 pm, NGI (Natural Gas Intelligence) will host a webinar titled, “Cracking the Ethane Code in Appalachia,” all about the Shell ethane cracker. NGI’s ace reporter Jamison Cocklin (MDN editor Jim Willis knows Jamison and has the highest regard for his reporting and writing) will moderate. On the call will be an all-star cast: Don Rush, VP of CONSOL Energy; Jim Cooper, American Fuel & Petrochemical Manufacturers; Denise Brinley, PA Department of Community and Economic Development; and Danielle Sandusky, Level 2 Energy. The webinar will help answer questions about the size and scope of the cracker, whether (and how) the cracker will impact drilling decisions, what about competition from other crackers along the Gulf Coast, and more. Below is more information, and a link to register for this FREE webinar…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell CEO Says PA Cracker Up & Running “Not Anymore This Decade”
February 3, 2017February 3, 2017

Shell CEO Ben van Beurden

In June 2016, MDN was one of the first to unearth the announcement by Shell, almost hidden away inside another announcement, that the company had made it’s “final investment decision” (FID) to move forward with building a multi-billion dollar ethane cracker in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). At the time of the announcement, and since then, Shell has been cagey in not pegging any specific date for when they predict the plant will be built and online–although they have said the plant would start to contribute cash to Shell’s bottom line “after 2020.” That’s about all we’ve been able to find about timing for the plant–until now. Shell released their fourth quarter and full year update yesterday, and as part of that update, held a conference call with analysts. On the call, Shell CEO Ben van Beurden said, in response to a question from an analyst, that Shell will begin spending big money to build the plant “by the end of the year [meaning this year], certainly in 2018.” van Beurden also said, “We haven’t announced exactly when it will start up, but expect that to be not anymore this decade.” He’s not a native English speaker, so we’re having a tough time figuring out exactly what he meant. Does he mean the cracker will be running “not anymore *than* this decade” (meaning before 2020), or “not anymore *in* this decade” (meaning it is now pushed out after 2020). You’re guess is as good as ours…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell

Potter Twp (Finally) Approves Permit for Shell Ethane Cracker
January 19, 2017January 19, 2017

In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed. Potter Township supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. Last week the supervisors held yet another meeting and the antis behaved like they always do–like petulant children, hollering and booing and making a$$es of themselves. One supervisor said he was “appalled” by the conduct of the crowd at last week’s meeting. That’s all in the rearview mirror now. Last night Potter Township held another meeting and yes, they finally voted to grant the cracker project the necessary town permits to proceed. Oh! The crowd last night? While it had a few crazies, it was packed with local residents who support the project. Nice to see the good guys come out in force to counteract the nutters…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell

Potter Twp Inches Closer to Approving Permits for Shell Cracker
January 12, 2017January 12, 2017

In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). The supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. The supervisors held another meeting last night and a small group of antis attended with preprinted signs. One sign said “Deficient = DENY.” The other said, “Disaster Decision.” The first sign was flashed as supervisors tried to conduct their business. When the supervisors finally held a vote to ask the town attorney to draw up an official document to approve the cracker, the antis got mouthy (as they always do) and flashed the other sign. Amidst the shouting by antis, one supervisor asked for order in the room. One horse’s rear-end shouted, “Maybe the public wants disorder.” Here’s how it went last night…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Shell

Shell Leases More PA Properties to Build Ethane Pipeline
January 9, 2017January 9, 2017

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Nearly a year ago, in February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). In August, MDN brought you more details, that Shell is indeed working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February. The new ethane pipeline system has a name: the Falcon Ethane Pipeline System (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell formally launched an open season to sign up shippers for the Falcon Pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). Some new news to share. Last September and October Shell signed up six more property easements, in Beaver County, for the Falcon Pipeline. How much Shell will pay the landowners is still being negotiated and will not be made public (unfortunately). However, we can tell you who leased, along with the piddly amount of taxes Shell will pay to the state and local towns…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA | Wastewater

Shell Cracker Wastewater Discharge Becomes an Issue
December 22, 2016December 22, 2016

Environmentalists are accusing Shell of using a loophole to discharge wastewater at their future ethane cracker that will exceed state limits for TDS (total dissolved solids). The issue may sound familiar. In 2011 Pennsylvania “requested” that municipal sewage treatment plants without specially outfitted equipment stop accepting and processing Marcellus wastewater (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Almost immediately, it stopped, which was a good thing for the environment. The problem with shale wastewater (i.e. produced water) is its high TDS content, including bromide. When bromide combines with chlorine used in wastewater treatment plants, it combines to produce trihalomethanes, which (in some studies) indicate increased levels of cancer in humans (see MDN In-depth: Marcellus Wastewater Discharges via Municipal Sewage Treatment Plants into PA Waterways). Nasty stuff. While the Shell ethane cracker will not process shale wastewater, it will produce water with TDS as part of its process. Shell plans to use a permit from the plant it is replacing, an old zinc smelting plant, to discharge a certain volume of water with TDS. Environmentalists say the volume they will discharge is too much and if the plant were not using a pre-existing permit (swapping ethane cracking for zinc smelting) the volume of wastewater they want to discharge would not be approved. That is, Shell is leveraging a loophole, a permit grandfathered in, and the volume of wastewater it will discharge may endanger humans downriver. Legit? Not legit?…
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Air Quality | Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell | Statewide PA

Shell Seeks to Horse Trade Air Pollution Credits for Cracker Plant
December 19, 2016December 19, 2016

In June 2015, a full year ahead of Shell’s final investment decision (FID) to build a multi-billion dollar ethane cracker plant complex in Beaver County, PA, the PA Dept. of Environmental Protection issued the project air quality permits–which was a “critical” requirement for Shell before making their decision (see Shell Receives Air Quality Permit from PA DEP for Cracker Plant). Two months later, two litigious Big Green environmental groups with deep pockets–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project–tried to scuttle the project by appealing the DEP’s issuance of the air quality permits (see Big Green Groups File to Block Shell Cracker Air Quality Permit). Fortunately the DEP blew off the Big Green appeal. However, the issue of air pollution is not yet totally resolved. In order for Shell to build the plant–a plant that will have a fair amount of emissions–they need to buy pollution credits from other plants. That is, if other plants are installing new air pollution controls, or shutting down, Shell can buy their emissions allotments, and use them for the cracker project. In the end, it’s all about controlling how much of the nasty stuff, like volatile organic compounds (VOCs) gets pumped into the air in a given region. But there’s a problem. Shell can’t find enough VOC credits to buy, so they’re proposing a deal with the DEP to buy a different kind of credit instead–NOx or nitrogen oxides. Will the DEP allow Shell to horse trade NOx for VOCs? That’s the billion dollar question…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell

Potter Twp Declines to Approve Permits for Shell Cracker, For Now
December 15, 2016December 15, 2016

The Potter Township Board of Supervisors convened a public hearing on Tuesday afternoon at 3 pm that ended up going until 1 am Wednesday. The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing Wednesday night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors are still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). It seems the antis are attempting to stop this project cold–which should have the good citizens of Beaver County (indeed the entire northeast) outraged. At any rate, we’re sure the permits will be forthcoming–but now it won’t happen until sometime in January…
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Beaver County | Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Shell | Statewide PA | Supply Chain

Small Biz Looks to Plug in to Shell Ethane Cracker in SWPA
November 28, 2016November 28, 2016

Some of the first businesses that will profit from the mighty Shell ethane cracker being built in Beaver County, PA will be small, local businesses. Restaurants, banquet halls, hotels, drug stores, real estate…the list goes on. But even small businesses that want a piece of the Shell cracker plant action don’t automatically have smooth sailing. Trying to get Shell to promote a business to its workers is hard work. Businesses report talking to Shell and being told that the company won’t help them by promoting them to cracker plant workers (a bit un-neighborly if you ask us). But that’s the life of an entrepreneur. You encounter brick wall after brick wall and you find a way to go through it, or over it, or around it, or under it. That’s what several small businesses in Beaver County are doing with Shell…
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Butler County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Gov Wolf Basks in Predecessor’s Accomplishment at Cracker Site
November 15, 2016November 15, 2016

Click for a larger version – credit: captainscratchy.com

For a guy who wants to tax the Marcellus industry out of existence, PA Gov. Tom Wolf sure likes to bask in the glow of the industry’s success. Perhaps the crowning achievement of former PA Gov. Tom Corbett was the wooing and winning of Shell to build a multi-billion dollar ethane cracker near Pittsburgh. It’s hard to overstate just how big a deal the cracker plant is for the state–not only for PA, but also for nearby OH and WV. Shell’s ethane cracker will attract manufacturers to relocate nearby to take advantage of the cheap plastics that will come from the plant. While Shell will invest somewhere on the order of $6-$8 billion, with the coming build-out of manufacturing facilities in the region, it promises to turn into a $20 billion economic boost for the entire northeast. An amazing story! Right now Shell is busy at work clearing the site, which used to be a Horsehead zinc smelting operation. Gov. Wolf toured the site on Monday and was impressed, basking in the glow of what’s happening. Thing is, Wolf didn’t have a single thing to do with the plant coming to PA–other than not screwing up the deal before it was formally announced…
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Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline
October 18, 2016October 18, 2016

In February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August that shed new light on the project–news that Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). As NGI reported at that time, the new ethane pipeline system has a name: the Falcon Ethane Pipeline System. Yesterday Shell launched a binding open season for the Falcon pipeline, complete with an official map and all sorts of details…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Ethane Cracker Application: Construction May Start in 2016!
October 17, 2016October 17, 2016

Artist’s rendering of Shell Monaca Ethane Complex

The Beaver County Times has located a copy of Shell’s land development application, filed with Potter Township and the Beaver County’s planning commissions. It reveals many of the details about the plant and how it will get built. Perhaps the biggest news coming from Shell’s application is news that Shell plans to begin construction on the actual ethane cracker plant by the end of this year! That is good news indeed. All along, Shell has maintained they won’t begin construction of the actual plant until 2017. Here’s a few more goodies revealed in the application…
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