Processing Plants

Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Processing Plants | Shell | Statewide WV | West Virginia

WV is “Major Winner” from Shell PA Cracker Plant
June 20, 2016June 20, 2016

The good vibes are still reverberating following Shell’s announcement that they will move forward with building a $3+ billion ethane cracker in Monaca, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). It’s fantastic news for Beaver County, PA, and in fact all of PA. We’ve seen immediate positive effects, particularly in the local real estate market with announcement after announcement of new deals being done. However, the location of the cracker will be near both the borders of Ohio and West Virginia. Former state senator and current West Virginia Public Service Commissioner Brooks McCabe says the PA cracker is as good news for WV as it is for PA. He says WV is “a major winner” with the Shell PA cracker announcement. Here’s why…
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CNG/LNG | Industrywide Issues | Processing Plants | Regulation

Nova Scotia Seeks Comments on Plans to Overregulate LNG
June 17, 2016June 17, 2016

Nova Scotia – click for larger version (Credit: Wikipedia)

Yesterday MDN highlighted the good news that the government of Canada has given its final, full approval for the Bear Head LNG project proposed for Nova Scotia (see Canada Grants Final Approval for Bear Head LNG Facility). The Goldboro LNG export facility (Pieridae Energy) is also proposed for Nova Scotia. Both facilities would use a considerable amount of Marcellus Shale gas to compress and export–so even though they are Canadian projects, they are of keen interest to us in the Marcellus/Utica region. So it was with equally keen interest we noticed that Nova Scotia is seeking comments on how the province can limit so-called greenhouse gas (GHG) emissions, specifically from these two proposed LNG facilities. If Nova Scotia enacts onerous regulations on methane emissions, these plants will never get built. The government of Nova Scotia is eliciting comments on proposed new regulations (see below) from now until July 29…
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Axiall | Energy Services | Ethane | Industrywide Issues | M&A | Marshall County | Processing Plants | West Virginia

Westlake Chemical Buys Axiall, Enters NE Cracker Market
June 14, 2016June 14, 2016

In December MDN told you that Axiall Corporation, a large petrochemical manufacturer, had made a final investment decision to move ahead and build a $3 billion ethane cracker/petrochemical facility in Louisiana (see Final Decision: Axiall Building Ethane Cracker in LA…NE Ethane?). Based on comments and various news accounts, we shared with you the opinion that its almost certain the plant will be supplied by shale gas from the Marcellus/Utica region (see Axiall Announces New Cracker Plant for LA, Fed by NE Ethane). Axiall owns, among other things, a large petchem plant in Marshall County, WV, the former PPG chemical plant along W.Va. 2 which Axiall bought just three years ago. Last Friday Westlake Chemical, another large petchem manufacturer, announced they are buying Axiall lock, stock and barrel–for $3.8 billion. Among the comments Westlake made is that it “looks forward” to working on the ethane cracker plant in Louisiana. Welcome to the Marcellus, Westlake!…
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Industrywide Issues | Processing Plants

Siluria’s Disruptive Technology Gets French Partner – Air Liquide
June 14, 2016June 14, 2016

We’re keeping a close eye on Siluria Technologies. In May we told you the company has pioneered a way to convert methane (i.e. natural gas) directly into ethylene, the raw material used to make plastics (see New Tech Converts NatGas into Ethylene, Bypassing Cracker Plants). Siluria’s disruptive technology has the power to bypass the need for large ethane cracker plants, like the one Shell recently announced for PA. Very cool stuff. Earlier this month MDN told you that Siluria had taken on an Italian partner (see Siluria Gets Partner to Convert Methane Directly into Petrochems). The company continues on its aggressive push. Last week the company announced yet another partner–this one from France…
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Energy Companies | Ethane | Industrywide Issues | Processing Plants | Shell

Shell’s PA Cracker Plant Will Increase Shale Drilling in Region
June 13, 2016June 13, 2016

The euphoria over Shell’s announcement last week committing to building a multi-billion dollar ethane cracker plant in Monaca (Beaver County), PA still hasn’t subsided (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Although the plant won’t be ready for five years–it takes that long to build one–already the plant has been a shot in the arm. As we noted on Friday, commercial real estate is taking off in the region (see Shell Cracker Plant Will Spur Real Estate Deals 150 Miles Away). However, there is another reason the Shell cracker is good for PA and for the shale industry: it will encourage more shale drilling. Currently Marcellus and Utica drillers have very limited options when it comes to selling ethane. Ethane is an NGL (natural gas liquid) that comes out of the borehole along with methane and other hydrocarbons. Some estimates say in the NGL-rich area of southwestern PA and eastern OH, some 20% of what comes out of the ground is ethane–at least for some wells. Right now most drillers have to dispose of that ethane–it’s an expense! When the cracker starts up operations, that ethane can be sold to Shell, helping the balance sheet of drillers. If you can get more money from what you’re getting out of the ground, you’ll do more drilling. Pretty basic common sense. In anticipation, CONSOL Energy already has a contract to sell Shell some of its ethane…
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

How Republican Tom Corbett Convinced Shell to Locate Cracker in PA
June 13, 2016June 13, 2016

Former Gov. Tom Corbett

There’s no question that Tom Corbett was ten times the governor that Tom Wolf is now. Wolf is an undisputed disaster. Good thing Corbett is the one who brokered the deal to get Shell to select Pennsylvania as the location for its multi-billion dollar ethane cracker plant. A big tax incentive helped lure Shell to the Keystone State, no question about it. But that’s not the only reason the company decided on PA. When it comes to business and sales, there are a couple of tried-and-true axioms. One of those axioms is that people do business with people–not companies. Another is this: people buy from people they know, like and trust. Take any one of those elements away, and you don’t make a sale. So how did Tom Corbett “sell” Shell on PA as the location? There were a number of factors, but one way that stands out as a shining example: Corbett treated the Shell execs to a Pittsburgh Steelers game…
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Braskem | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

A Pulse! WV Ethane Cracker Project Comes Back from the Dead
June 10, 2016June 10, 2016

What’s this? The all-but-dead ethane cracker project planned for West Virginia has new life! (Perhaps the Shell announcement has something to do with it?) Brazilian company Odebrecht has pulled out of the Appalachian Shale Cracker Enterprise (ASCENT) project previously announced for the Parkersburg, WV area (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). However, Odebrect subsidiary Braskem has confirmed they will now move forward with developing the project on their own. If this bears out, it is fantastic news for a state that (in our opinion) deserves a cracker. But before you get overly excited, Braskem’s announcement that they are now the lead on the project is still not a confirmation they will build it. Braskem is still in the evaluation stage…
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Economic Impact | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Shell Cracker Plant Will Spur Real Estate Deals 150 Miles Away
June 10, 2016June 10, 2016

Gentlemen, start your engines! Your economic engines, that is. The news earlier this week that Shell has made the commitment to move ahead and build an ethane cracker plant in Monaca, PA has, as we knew it would, set the region buzzing (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go! and Shell PA Cracker Plant Project a Lot Bigger Than First Thought). With the decision now made, those in the real estate community are salivating over how that decision will reverberate throughout the region. There is now an effort underway to lure manufacturers in Texas and along the Gulf Coast area to consider setting up in the western PA (and eastern OH and northern WV) area instead–to take advantage of being that much closer to the biggest market in the country–the East Coast. One real estate pro says commercial real estate for up to 150 miles away is likely to be impacted by the decision to build the cracker plant in Monaca…
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Shell PA Cracker Plant Project a Lot Bigger Than First Thought
June 8, 2016June 8, 2016

Artist’s rendering of Shell Monaca Ethane Complex – click for larger version

Yesterday MDN was one of the first to bring you the fantastic news that Shell has decided to move forward with building their multi-billion dollar ethane cracker plant (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Shell mentioned their positive final investment decision (FID) as part of a larger, wide-ranging announcement on their plans for the next few years and beyond. They were slow off the mark, but Shell finally issued a separate press release about the FID for the Monaca, PA ethane cracker plant complex. As usually happens with a story this big, more details have come out after the initial announcement. For example: Shell’s initial estimate for the cost of the project, more than four years ago, was “$2-$3 billion.” Now? They won’t say. But some news sources are reporting it will be closer to a $6 billion investment. One even goes as high as $11 billion! What Shell *is* saying is that construction on the main part of the facility will begin in 18 months, with production expected to flow beginning “early in the next decade”–which we take to mean sometime around 2020 or 2021. Shell says the project will provide work for 6,000 temporary construction workers while it’s being built, and 600 permanent, full-time employees to operate the facility once it is built. Needless to say, local economic and government leaders in the Pittsburgh region are ecstatic with the news. Here’s more details about the Shell ethane cracker coming to PA, along with select reaction and comments…
Read More “Shell PA Cracker Plant Project a Lot Bigger Than First Thought”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Gov Wolf Attempts to Take Credit for Shell Cracker Decision
June 8, 2016June 8, 2016

Former PA Gov. Tom Corbett – the reason Shell decided to build a cracker

You know what’s really sleazy about politicians? When they take credit for something they had NOTHING to do with. Like Pennsylvania Gov. Wolf is doing with the fantastic news that Shell will build an ethane cracker plant in the state (see yesterday and today’s stories). The reason Shell even considered PA in the first place is because of Wolf’s far more able and talented predecessor, Gov. Tom Corbett. Corbett fought tooth and nail to get Shell to locate the cracker in the Keystone state. Part of Corbett’s fight included getting $1.7 billion in tax breaks approved, to lure the plant to PA (see Gov. Corbett’s PR Campaign for $1.7B Cracker Plant Tax Break). The cracker decision kept getting delayed during Corbett’s tenure, something he took a lot of heat over. If Shell had committed sooner, PA may have had a different election result (re-electing Corbett instead of the disastrous Wolf). Anywho, that was yesteryear, and today, Tom Wolf is taking credit for something Tom Corbett did. Typical…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!
June 7, 2016June 7, 2016

This is the biggest of big news. We’ve been waiting for this day a LONG time. Earlier today Shell held a “Capital Markets Day” (in the Netherlands) and provided an extensive update on “reshaping” the company–for 2020 and beyond. As part of the update, hidden part of the way through their press release, we get this statement from Shell: “In Chemicals, the company already has brownfield growth projects underway on the US Gulf Coast and in China. Today we are announcing the final investment decision on a new, 1.5 million tonnes per annum (mtpa) cracker and polyethylene plant in Pennsylvania, USA, which will use natural gas from shales production as its feedstock. Once these projects are on stream, early in the next decade, Shell’s ethylene capacity should reach around 8 mtpa, compared with 6.2 mtpa today.” The implication is that the FID (final investment decision) is “yes, we’re building it” as evidenced by the phrase “once these projects are on stream…” MDN predicted it (see More Evidence that the Shell Ethane Cracker Plant in PA is a Go). You don’t spend half a billion (out of $2-$3 billion) and not move forward. Still, it’s fantastic to have Shell finally, after five years, say “Yes, we’re building it.” Another fascinating bit of news from today: Shell says shale will be very important to the future of the company, after 2020…
Read More “Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!”
Industrywide Issues | Processing Plants

Siluria Gets Partner to Convert Methane Directly into Petrochems
June 3, 2016June 3, 2016

A company we’re keeping our eye on is Siluria Technologies. We wrote about them a few weeks back (see New Tech Converts NatGas into Ethylene, Bypassing Cracker Plants). In a nutshell, Siluria doesn’t need to use ethane to crack it into ethylene (the raw material used in plastics). Instead, Siluria has invented a process to go directly from methane to ethylene, bypassing the need for a cracker plant to crack ethane. How cool is that? Siluria is building on their early success by partnering with Italian company Maire Tecnimont to “combine their respective technologies and expertise to bring to the marketplace a unique process to convert natural gas directly into commodity chemicals and their derivative products.” What does it mean? Does it mean Siluria has gotten an Italian partner to sell its technology in Europe? Does it mean Siluria will be able to convert methane into petrochemicals other than ethylene? No idea! But we’ll keep a sharp eye out for more details when/if they become available. In the meantime, here’s the Maire Tecnimont announcement…
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Anti-Drilling/Fossil Fuel | CNG/LNG | Crime | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Cove Point Protester Sentenced to Jail, Lied About Police Assault
June 1, 2016June 1, 2016

When did it become “vindictive” to prosecute criminals? That’s what we’re supposed to believe about the prosecution of a radicalized, anti-fossil fuel environmentalist who was just, after nearly one and a half years, sentenced to serve 15 days in jail for lying, falsely claiming local police assaulted her. In February 2015 Heather Doyle, a radical “activist” climbed a crane at the Dominion Cove Point LNG export facility to hang a banner that said, “Dominion get out. Don’t frack Maryland. No gas exports. Save Cove Point.” It’s bad enough that she endangered herself along with another activist who aided her. She also endangered rescue workers and police who had to remove her from the crane. Then Doyle lied to the police and claimed Calvert County Sheriff’s Office deputies assaulted her as they were removing her from the crane SHE climbed up. That’s a very serious charge–especially in this day and age. The police investigated and discovered she was lying, so the District Attorney pressed charges. And it took this long for the case to play out. On May 27, Judge Marjorie Clagett of the Calvert County Circuit Court sentenced Doyle to three months in jail, with all but 15 days suspended, 240 hours of community service, two years of supervised probation, and $165 in court costs. It ain’t much, but it’s a little bit of justice against radicals who frequently break the law in a misguided attempt to protest fossil fuels…
Read More “Cove Point Protester Sentenced to Jail, Lied About Police Assault”
Industrywide Issues | Processing Plants

Intrexon, Dominion Remain Excited About Marcellus GTL
May 25, 2016May 25, 2016

Last summer MDN told you that Dominion was partnering with a company called Intrexon to “explore the potential” of building a gas-to-liquids (GTL) plant or plants, plural (see Marcellus/Utica Gas-to-Liquids Not Dead! Dominion Sniffing Around). If they decide to move forward, Dominion would have exclusive rights to build a plant(s) in the Marcellus/Utica region using Intrexon’s technology. GTL technology converts shale gas into other products like diesel fuel. It now appears to be more than “checking it out” talk. Intrexon recently announced they’ve built a pilot plant for their technology–in South San Francisco, of all places. Below we update you on Intrexon’s new pilot plant, and bring you some great analysis by a Motley Fool analyst…
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Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Global Says Belmont, OH Ethane Cracker NOT Delayed
May 13, 2016May 13, 2016

PTT Global Chemical, based in Thailand, 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). From the beginning, PTT let it be known a final decision on whether or not to invest the whole $5 billion would not come until 2016 or 2017. Last week MDN picked up a story from the Bangkok Post which said the decision will definitely come in 2017, calling the decision “delayed” (see PTT Global Says OH Cracker Decision “Delayed” Until 2017). Apparently stung by that story, a local PTT spokesman in Ohio has responded to say the Bangkok story is wrong–the decision is not “delayed” and is, in fact, on track…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

More Progress at Shell’s PA Ethane Cracker Plant Site
May 12, 2016May 12, 2016

Proposed Shell cracker plant site plan – click for larger version

All signs continue to point to a “go” decision for Shell’s planned ethane cracker plant facility in Monaca (Beaver County), PA. Shell has now spent over half a billion dollars out of a projected $2-$3 billion (25%) on the project already (see Shell has Spent “Half a Billion Dollars” on PA Cracker Already!). Last month a local mall owner said that Shell has leased part of the mall’s parking lot for big bucks (see More Evidence that the Shell Ethane Cracker Plant in PA is a Go). And just last week Shell’s CFO said the PA cracker project is “an excellent project” and they expect to make a decision soon (see Shell Says PA Cracker Decision Coming < 12 Months – Looking Good). We can throw a few more positive signs into the mix. A bridge Shell was building over top a local highway to give trucks easy access to the site is now complete. Shell has committed $69 million to build a new water treatment plant for the local town. And they are now building a new dock facility which, according to Shell, will be “critical” to building the new plant…
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