Ethane

It seems that darned West Virginia ethane cracker plant is just getting too much attention, so the AP has written a “Me too! Me too! Look at me! Pick me!” article about the proposed Shell ethane cracker plant planned for Beaver County, PA. AP has “investigated” (there’s a first!) and found certain evidence that may point to Shell actually going forward with their cracker plant. As MDN pointed out tongue-in-cheek just last week, the Greater Pittsburgh area has some angst that the WV cracker may spell the end of the Shell cracker in their state–so there’s a bit of trash talking going on (see Clash of the Ethane Cracker Titans: PA vs WV Smackdown).

AP to the rescue! Here’s the evidence from the AP that yes indeed, Shell really really really is maybe considering may possibly might actually build a cracker plant near Pittsburgh after all:
Read More “AP’s “Evidence” Shell Still Considering a PA Cracker Plant”

MDN recently brought you rumors (evidence?) that the prospects of Shell building a multi-billion dollar ethane cracker plant in western Pennsylvania were seriously dimming (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). The most ominous two pieces of evidence against Shell moving forward was doubt cast by industry expert Rusty Braziel and the statements from Shell’s outgoing CEO Peter Voser who said that Shell would not be able to build all three major projects they now have on the books (one of the three being the PA cracker plant). Delays in committing to the project, negative speak from the CEO and numerous NGL and ethane pipelines coming online seem to cast doubt on Shell building the cracker.

But wait, what’s this? We have a new, happier rumor to share with you. According to a reliable source, Shell has hired Linde and Bechtel to perform front end engineering and design (FEED) work on the PA cracker plant! It seems to us if the cracker were truly dead Shell would not spend big bucks to design it (although we may be wrong on that score). Here’s the latest rumor courtesy Gas Business Briefing:
Read More “PA Ethane Cracker – On Again, Off Again…Now On Again?”

On an analyst call yesterday, Shell’s outgoing CEO Peter Voser stoked fears that Shell may be ready to pull the plug on the announced ethane cracker plant planned for Monaca, PA. According to Voser, the company will make “hard choices” over the next few quarters about which projects it will fund and build. Specifically, Voser said the company had previously announced three big projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. He said Shell cannot build all three projects. Gulp.

Voser’s comments have led to speculation that the ethane cracker plant in PA will get the ax, especially with two ethane pipelines coming online by the end of this year, and two more mixed NGL pipelines coming online in the next few years (see our companion story today, “Midstream Knife Fight”). Just last week we highlighted a story from the Wall Street Journal and industry analyst Rusty Braziel which also cast doubt on the PA cracker plant (see WSJ Says PA Cracker Plant May Not Happen After All). Are things going south–literally and figuratively–for the Shell cracker? Yesterday’s comments from Voser:
Read More “Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?”