A SECOND Ethane Cracker Coming to Pennsylvania? Maybe!
Last week MDN reported that Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED) had gone on a roadshow to three counties that will be most affected by Shell’s ethane cracker plant planned for Beaver County (see PA Econ Dev Secretary Hits Road to Promote Shell Cracker). Of course one of those counties was Beaver. Davin addressed a forum in Beaver last Tuesday. What we’re just learning now is that, at the Beaver forum, there was brief talk about a SECOND ethane cracker for Pennsylvania. You read that right. There are no concrete plans as yet, but the scuttlebutt is that an unnamed company is scouting PA for a second cracker plant. According to Davin, his agency has “heard rumblings” but “nothing more.” However, following Davin’s appearance in Beaver and the talk of a second cracker, the DCED issued a statement clearly meant to stoke those rumors…
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We suppose we should have known, but we didn’t. We didn’t know that Pennsylvania has a Department of Community and Economic Development (DCED). In fact, the DCED has its own cabinet-level Secretary–Dennis Davin–appointed by Democrat Gov. Tom Wolf in January 2015 when Wolf assumed office. Davin has stayed largely under the radar–until now. Wolf has sent Davin out on a road show to promote the forthcoming Shell ethane cracker plant. Davin is conducting roundtable discussions in various communities around PA to generate ideas on how local businesses can benefit from the cracker. So far he’s visited Beaver County (where the cracker will be built), Lawrence County and Washington County. The DCED is flooding the airways with press releases about Davin’s cracker road show…
Last month MDN brought you the news that UK-based Velocys, a company that builds gas-to-liquids (GTL) plants has, for now, put a previously planned GTL plant project in Ashtabula, OH on hold (see 
Last week MDN was the first to share the news that the California-based US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see 
Methanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze and more. More commonly you may call it a gas-to-liquids (GTL) plant. Methanol plants have the capacity to create a big demand for natural gas and sop up some of the oversupply we have in the Marcellus/Utica. In May we told you about Primus Green Energy’s plan to build a 160 metric tons per day (MT/day) methanol plant for Tauber Oil somewhere in the Marcellus (see 
We’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. The most recent news we had was when the U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties, back in February (see 
Yesterday ExxonMobil and Saudi Arabian petrochemical giant SABIC announced they have formed a joint venture partnership and are evaluating (and plan) to build yet another ethane cracker plant complex along the Gulf Coast–in either Texas or Louisiana. The Gulf Coast has numerous such plants already in operation. The northeast has (so far) none. Why the two companies are not looking to the northeast is beyond us. In their announcement the companies said they want to locate along the Gulf Coast “near natural gas feedstock.” Why is this an MDN story? Because (a) pipelines are planned from the Marcellus/Utica region to the Gulf Coast, and this cracker, if built, will be yet another new market for our gas, and (b) because it will likely compete with the crackers that do get built in the northeast. Shell has committed to building one in Pennsylvania, and PTT Global Chemical will make a final investment decision in 2017 on a planned cracker in Ohio. A new Exxon/SABIC cracker will compete for our gas supplies, we have no doubt. Here’s yesterday’s joint announcement…
Although he still wants to tax the Marcellus Shale industry out of his state, Pennsylvania Gov. Tom Wolf (with the dubious title of “most liberal governor in the U.S.,” see 
Anti-drilling zealots attempting to stop the Cove Point, Maryland LNG (liquefied natural gas) from going online have failed in court, again. And they failed big time. MDN reported in April that a group of Big Green groups, including the Sierra Club, the Chesapeake Climate Action Network, the Patuxent Riverkeeper, EarthReports Inc. and Earthjustice colluded together to sue in federal appeals court to try and stop the project (see 
Look! Up in the air! It’s a bird…it’s a plane…it’s a,a,a,a…energy drone? Yep. Drones used to inspect pipelines, keep an eye on refineries, processing plants and compressor stations–drones used for just about anything related to the oil and gas industry–have just been approved by Congress. The oil and gas industry is delighted…
In April 2015 PTT Global announced they had chose a site in Belmont County, OH as the site of for their $5.7 billion ethane cracker complex (see 
We’ve previously reported on a number of LNG (liquefied natural gas) export projects planned for the eastern shore of Canada. There are four to five such projects, depending on how you count them. However, one of those projects–Bear Head LNG in Nova Scotia–seems to have the most momentum. Such projects needs loads of permits and approvals before the first shovel ever hits the dirt. It seems like Bear Head has most of its ducks in row, ready to begin. Importantly, both the U.S. (because the gas will come from the U.S.) and Canadian regulators have signed off on the project. But there are, as we are learning, still more permits and approvals needed. Bear Head just scored another important approval. The government of Nova Scotia has just granted Bear Head its approval of their Greenhouse Gas (GHG) Management Plan. Silly, we know. Adults with brains have to pretend that leaking CO2 or methane into the atmosphere is somehow endangering Mother Earth. But these are the games that people play in order to get business done. The Bear Head LNG project is important for the Marcellus/Utica because our gas will feed it via the Maritimes & Northeast Pipeline, making it an important new market for northeast natgas…
It’s been some time since we’ve heard anything about/from the Ashtabula Gas-to-Liquids (GTL) plant project that Velocys says it will build in Ashtabula, Ohio. As a quick tutorial for those who may not know, GTL converts natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in the area. But although we’ve heard plenty of talk about such plants, none of them seem to get built–including the Ashtabula plant. There has been progress on the Ashtabula project. Early in 2015 Velocys filed for a permit, which was subsequently granted (see 
The litigious Sierra Club, an environmental organization that may have been founded for good reasons long ago but has become radicalized in their opposition to all fossil fuels, was dealt a serious legal blow last week. None other than the very liberal District of Columbia Circuit Court of Appeals ruled against the Sierra Club–responding to a lawsuit brought by the Sierra Club that tries to force the Federal Energy Regulatory Commission (FERC) to consider factors not within their purview when deciding on whether or not to issue permits for LNG (liquefied natural gas) facilities. The court decision directly affects two Gulf Coast LNG facilities but also has implications for the Cove Point, Maryland LNG export facility currently under construction by Dominion, now about half completed. The Sierra Club tried to argue that the more LNG you export, the more drilling (i.e. “upstream”) activity is needed, and drilling activity and what it produces (natural gas) is causing man-made global warming. Ergo FERC should be required to consider those “impacts” when making its decision on permitting such facilities. The problem is, under FERC’s charter they are specifically NOT allowed to consider such peripheral considerations. FERC is to make its decisions based on real science: Would a potential project impact the local ecology and environment in a negative way? If so, it doesn’t get a permit. The normally chatty Sierra Club went silent following the court’s decision…
Can a single petrochemical facility, like Shell’s proposed ethane cracker plant in Beaver County, “rebirth” all of Pennsylvania’s moribund manufacturing base? That would be a resounding “Yes!” according to Marcellus Shale Coalition president Dave Spigelmyer and Pennsylvania Manufacturers’ Association president Dave Taylor. Writing a column in the Harrisburg Patriot-News, the two Daves make the case for just how big a hairy deal the coming Shell cracker in PA really is…