Ethane

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    Milestone: Construction Begins on Shell Cracker Plant Buildings

    A major milestone has been reached in the mighty Shell $6 billion ethane cracker facility project. Over the past year or so site preparation has been vigorous. Work at the site in Monaca (Beaver County), PA has included building bridges, relocating a state highway, improving existing interchanges, repositioning a rail line, and preparing foundations for the new complex. The prep work is now largely done–and this week begins construction of the buildings that will house four processing units–the ethane cracker itself and three polyethylene units. Also part of this next (final) phase of construction: a 900-foot long cooling tower, rail and truck loading facilities, a water treatment plant, an office building and a laboratory. Oh! And let’s not forget that Shell will also build a 250 megawatt electric generating plant that will provide all of the electricity needed at the facility–powered by Marcellus Shale gas, of course! Here’s an update from Shell, with a picture of the site as it is now…
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    Shell Taps Brit to Run the $6B Ethane Cracker Project in Monaca

    Shell’s $6 billion ethane cracker plant facility in Monaca (Beaver County), PA is about to ramp up construction of the numerous buildings that will house the equipment. Since 2014, Ate Visser, vice president of Appalachia petrochemicals at Shell Chemical, has been the guy in charge of the project (see Shell Exec Shares Inside Story of Why They Chose PA for Cracker). However, beginning now, Hilary Mercer, a native of Manchester, England (has worked at Shell for the past 30 years) is now the woman in charge of the project. Mercer is the new vice president of the cracker plant project. She has an interesting, globe-trotting history. Mercer says she likes to build “big projects.” Prior to landing in her role in PA, Mercer was in South Korea overseeing construction of the largest floating structure ever built. But building the huge cracker facility isn’t the only thing that jazzes Mercer about the project. She’s pumped at the prospect of building the commercial side–building a business from the ground up. Finding customers, branding, everything that comes with creating demand for the output from the mighty cracker facility. Here’s a look at the new leader of the Shell cracker plant project…
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    Locals Pumped About OH Cracker; WV Cracker Still Not Dead

    Belmont County Port Authority Director Larry Merry says he “can’t think of a single reason” why PTT Global Chemical won’t build a promised $6 billion ethane cracker facility in Dilles Bottom. Mike Jacoby, VP of business development for the Appalachian Partnership for Economic Growth concurs, saying he is “optimistic” and sees “no problems” ahead for the PTT cracker. In addition to locals in Ohio pumped about the PTT cracker and the promised final investment decision by the end of this year, there is still hope for a cracker plant in West Virginia too. WV officials say Braskem is still expressing interest in a cracker project in the Parkersburg area. Here’s some of the chitter-chatter among pumped-up officials attending a forum last month in Wheeling, WV…
    Read More “Locals Pumped About OH Cracker; WV Cracker Still Not Dead”

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    Poor Prospects for Moving Marcellus/Utica Ethane to Gulf Coast

    According to the energy experts at RBN Energy, ethane production in the Marcellus/Utica region will go from 470,000 barrels per day now to 800,000 barrels per day by 2022–a 70% increase. Ethane, which is sometimes up to 10% of the hydrocarbons coming out of Marcellus/Utica wells (from wet gas and oil wells), can be an important revenue stream. However, you have to have someplace to sell it. Right now, many Marcellus/Utica producers have to mix in the ethane with the methane stream in order to get rid of it. In other words, it costs them money. It’s a waste product. However, when the Shell cracker plant in Beaver County, PA and (possibly) the PTT Global cracker plant in Belmont County, OH go online, important new markets will open up. But even two huge crackers won’t be able to buy all of the available ethane. There are a slew of new cracker plants coming online in the Gulf Coast over the next five years that could use Marcellus/Utica ethane. But will they? The problem, as always, is pipelines. According to an analysis by RBN, the prospects for moving more of our ethane to the Gulf Coast do not look good…
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    Mountaineer NGL Says 20 Drillers Interested in Ethane Storage

    For some time we’ve had our eye on a project to store ethane in underground caverns in Ohio. Mountaineer NGL Storage wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). As we reported in April, the company need customers to sign up to use the facility–a minimum of 1 million barrels of storage would get it going (see More Clarity on Status of Mountaineer NGL Storage Facility in OH). Mountaineer still needs to build a 3.25 million barrel brine pond, used to pump out the stored NGLs. Mountaineer is waiting for a clearance from the Ohio Dept. of Natural Resources to build the pond, which (in June) we said would likely to take “a few more months.” Strike that. The CEO of the project recently said he now does not expect to get those permits until “first or second quarter of next year” (see Mountaineer NGL Storage Project Delayed Until 2018). Mountaineer CEO David Hooker recently spoke at the Utica Summit V in North Canton. Here’s the latest he shared about this important project…
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    Utica Summit V: Investment in Utica Hits $55B, Petchem a Big Deal

    Yesterday Utica Summit V was held in North Canton, OH. MDN could not, unfortunately, attend. But others did and the reports we’re reading indicate it was another great event. Two major news items of interest came from the event. The first was the results of a recent economic study that show an amazing $54.7 billion has been invested in the Utica Shale play from 2012-2016, across upstream ($42.7 billion), midstream ($8.6 billion) and downstream ($3.4 billion). In a surprise statement, the report’s author said, “the biggest impact of the Utica may be the development of gas-fired power plants in Ohio and surrounding states.” The second news item was a big emphasis at the event on the downstream–on the really big deal the petrochemical industry is and will be for Ohio and surrounding states. Presenters made the point that some manufacturers in Ohio were cut off from plastics supplies from the Gulf Coast after the recent hurricanes to hit that area–and that with the Shell and potentially PTT Global cracker plants coming along, manufacturers in the region change where they source their supply of raw plastics. In fact, the petchem industry will explode in Appalachia. All thanks to the Utica (and Marcellus) and the ethane produced. Here’s a pair of reports from yesterday’s event…
    Read More “Utica Summit V: Investment in Utica Hits $55B, Petchem a Big Deal”

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    Shale Boom Saves U.S. Petchem Industry – Shell Cracker “2nd Wave”

    A decade ago the petrochemical industry in the U.S. was in the toilet–in the midst of a downturn. Plants were leaving our shores, heading to other countries. And then the shale revolution hit full force–and changed everything. Petrochemical plants and investment is now skyrocketing here at home, because of shale. Petrochemicals are chemical products derived from petroleum (i.e. oil) and natural gas. The entire plastics industry comes from oil and gas–you knew that, right? Ethylene (which comes from ethane) and propylene (which comes from propane) are used to make polyethylene and polypropylene respectively–that is, plastics. And plastics are used in just about everything you touch, live in, ride in, etc. Plastics make modern life possible. Without plastics, we’d be back in the Stone Ages–living short, brutish lives. Ten years ago our petrochemical industry was flailing, but today it’s thriving. According to an expert speaking last week at Pittsburgh Chemical Day (an annual event), the Shell ethane cracker now under construction is in the “the second wave” of ethane crackers. According to the same expert, we are witnessing the “biggest buildup in the U.S. petrochemical industry we have ever seen.” And it’s all because of shale…
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    Sunoco Makes Marcellus Ethane-by-Truck Available at Marcus Hook, PA

    The first truck enters the loading pad for the new ethane distribution rack at Sunoco Partners Marketing and Terminals’ Marcus Hook Industrial Complex in Marcus Hook, Pa., on Sept. 21. The facility’s 300,000 barrel chilled ethane tank is in the background. (Photo Credit: Energy Transfer Partners, L.P.)

    In March 2016 an Ineos tanker ship carrying 173,000 barrels of Marcellus ethane set sail from the Marcus Hook terminal near Philadelphia, bound for Norway (see Bon Voyage! First Ethane Export Ship Leaves Marcus Hook in Philly). Since that time, regular shipments of Marcellus ethane have traveled from Marcus Hook to various European destinations. Yesterday Sunoco Partners, a subsidiary of Energy Transfer Partners and the operator of the Marcus Hook refinery, announced they have opened a new ethane distribution facility inside the Marcus Hook refinery complex. It is a truck loading facility–the first such facility in the U.S. to load liquid ethane onto tanker trucks for local delivery. Wait, what? You thought ethane was only used in gigantic cracker plants, used as the raw material to make ethylene (i.e. plastics)? That is the primary use of ethane–but not the only use. Ethane can also be used as a refrigerant in cryogenic refrigeration systems. And there are other uses for small quantities of ethane, including the manufacturing of electronics. Sunoco says local trucked ethane deliveries will be used for “various ethane uses, from energy research and development to cooling and other industrial applications.” Sunoco already has its first customer–Gas Innovations–a reseller that trucks NGLs like ethane and propane throughout the U.S. (and ships it around the world). Gas Innovations is excited that their “cryogenic ethane business” is now supplied domestically via Marcus Hook. Previously, Gas Innovations had to import liquefied ethane. Marcus Hook’s truck facility opens up a whole new market for smaller users of Marcellus/Utica ethane throughout the U.S….
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    Shell Files PA Application for Ethane Pipe to Feed Cracker Plant

    Click to view a larger version of the map

    Shell’s long-talked about ethane pipeline, called Falcon Pipeline, is finally official. That is, official in the sense that Shell filed an application with the Pennsylvania Dept. of Environmental Protection last week, looking for permission to build it. Brief history: 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 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 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. In October 2016 Shell launched a binding open season for the Falcon pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). You might justifiably think that with open seasons and a scad of easements signed between landowners and Shell, that the project had already filed for permission to build. Not so. Last week Shell made it official by filing that paperwork–for the portion of the pipeline running through PA…
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    Shell Holding Career Expo in SWPA Oct 12 to Discuss Cracker Jobs

    While the Teamsters are holding a job fair today and tomorrow in Harrisburg to recruit for pipeline workers (see today’s lead story), next week Shell and the Community College of Beaver County (CCBC) will hold two back-to-back career expos on the other side of the state, in the Pittsburgh region, to “inform residents about all the current and emerging job opportunities” at Shell’s ethane cracker plant. On Thursday, Oct. 12, Shell will host the Pennsylvania Chemicals Military Petrochemical Day from 8am to 2pm–for former military service members. The event will be held in room 9103 of CCBC’s Learning Resources Center. Then at 6pm on the 12th, a free career expo will be held at the CCBC Dome–open to the public. Preregistration is not required, but is encouraged. This is your chance to meet with folks face-to-face who can help you land a job working on (or in) the mighty Shell ethane cracker. Don’t miss it!…
    Read More “Shell Holding Career Expo in SWPA Oct 12 to Discuss Cracker Jobs”

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    Big Green Group PennFuture Targets Shell Cracker w/Smear Campaign

    Last week the radicals at Big Green group PennFuture launched an advertising campaign that targets both U.S. Steel Corp. and the might Shell ethane cracker. The ad campaign, called “Your Toxic Neighbor” includes big ads on the sides of buses and on billboards in the Pittsburgh region. From the beginning of PA Gov. Tom Wolf’s administration, PennFuture radicals have populated his administration. Two PennFuture radicals previously in the Wolf cabinet are now gone: former Secretary of Policy, John Hanger (now gone, supposedly to spend more time with his wife and daughter in Massachusetts) and former Secretary of the Dept. of Environmental Protection, John Quigley (fired for conspiring with Big Green groups and getting caught doing it). The one remaining PennFuture radical still in the Wolf cabinet is Secretary of the Dept. of Conservation and Natural Resources (DCNR), Cindy Dunn. Time for Wolf to show her the door too (see Time to Fire Cindy Dunn, Last of Wolf Admin’s PennFuture Radicals). PennFuture tries to pass itself off as some sort of reasonable, pro-environment “let’s just make PA a better place to live” kind of group. Nothing of the sort. They are completely out of the mainstream, which is why we call them what they are: RADICALS. Here’s the latest smear campaign from a fringe group…
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    Shell Pays $43/Foot in Recent Deal for Ethane Pipeline Easements

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    In February 2016, MDN exclusively broke the news that Shell had begun to sign leases with landowners for a 97-mile ethane pipeline (two branches) to feed their mighty cracker plant (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). Since that time we’ve tracked any news we could find that reveals what Shell is paying landowners in Beaver County (and elsewhere) for the right to run the ethane pipeline (called the Falcon Ethane Pipeline) across their land. So far, we’ve seen rates as high as $75 per foot, and as low as $43 per foot. In the most recent round of easements–the first signed since August–Shell once again paid landowners $43/foot. Here’s the details of where the latest easements were signed, and for how much…
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    PTT Global Signs Memorandum with Ohio re Belmont Ethane Cracker

    On Monday, Mr. Supattanapong Punmeechaow, president and CEO of PTT Global Chemical (Thailand’s largest petrochemical company) signed a Memorandum of Understanding (MOU) with JobsOhio regarding PTT’s proposed ethane cracker plant. The MOU pledges to “enhance the well-being and quality of life” for those living in the area near the proposed cracker plant. PTT announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Since that time, all of the signs have been positive. PTT has said a final investment decision will be forthcoming by the end of this year. The MOU signing ceremony on Monday is yet more evidence that this project will happen. The ceremony itself is kind of interesting. It was not held in Ohio–but in Washington, D.C. where a trade delegation from Thailand was visiting (Punmeechaow was part of the delegation). So John Minor, president of JobsOhio, traveled to D.C. for the signing ceremony, which was held in what we can only describe as a garage…
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    Ethane Storage a Hot Topic at Shale Insight – Who Will Use It?

    One of the major themes at last week’s Shale Insight conference was NGLs (natural gas liquids), in particular ethane–and how the petrochemical industry that uses those NGLs will revolutionize the economic landscape of western PA, eastern OH, and northern WV–the tri-state area. One of the hottest of the hot topics is ethane storage. As we reported in early September, a research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub (see WVU Appalachia Ethane Storage Hub Final Report – We Need it Bad). The conclusion? Heck yeah! WVU researchers released their findings in a 181-page report titled “A Geologic Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids.” Among the study’s findings: A shale ethane storage hub could help create $36 billion in investment and more than 100,000 permanent jobs. The report and its findings were on the lips of a number of speakers at Shale Insight…
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    Shale Insight 2017 – Day Two News Roundup

    Shale Insight 2017 is now in the books. Another year, another great show. MDN editor Jim Willis is back in the office, chained to his computer. Next week Jim will share notes he took at the conference. For now, below are highlights from other news source from Day Two of the event. Unfortunately Jim had to leave before the closing keynote, given by former Trump White House Press Secretary Sean Spicer. But others were there to hear what Spicer had to say. Day Two began with a focus on the Shell ethane cracker. Members of the Shell team were on hand to describe how this critical project affects the region, and where it fits in the Marcellus/Utica landscape. One of the Shell team members said the skyline at the Beaver County site will change dramatically over the next 12 months as the buildings housing the various components are built. It was a fascinating talk with lots of information. Below is a roundup from Day Two…
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    Allegheny Comm. College Offers Free Scholarships for Cracker Jobs

    Last week MDN told you that Community College of Beaver County (CCBC) is operating a program in process technology that leads to an associate’s degree as preparation for a job at Shell’s $6 billion ethane cracker plant, being built now in Beaver County (see Community College of Beaver County Preps Students for Cracker Jobs). Shell primed the education pump by offering 14 full-ride scholarships for the program. Not to be outdone by CCBC, Community College of Allegheny County is offering free tuition to Washington County residents, thanks to a $100,000 scholarship program that’s looking to build a cracker-ready workforce. Yikes! Yes, it does seem a bit odd to us that Community College of *Allegheny County* is offering free tuition to *Washington County* residents–but hey, it works for us. Students can get either a one-year mechatronics certificate, or a commercial driver’s license (CDL). The “Cracker Ready Grant” program is funded by the Remmel Foundation through PNC Charitable Trusts. Here’s the deets…
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