Shell to Begin Demolition at PA Ethane Cracker Site Early 2014
In June 2011 Shell announced to the world that they would build a “world-scale” ethane cracker plant in the northeast (see Shell Commits to Building a Billion Dollar Chemical Plant in the Marcellus Region of U.S.). After looking around and being heavily courted by West Virginia, Ohio, and Pennsylvania, Shell finally chose a location northwest of Pittsburgh–in Beaver County, PA–in March 2012 (see Shell Announces Location of Ethane Cracker Plant). At the time a spokesperson said the final decision about whether or not to proceed was years away (see Shell’s Cracker Plant Actually “Years Away”?). She wasn’t kidding.
Fast forward two years later and it’s been a real roller coaster ride as to whether or not Shell would proceed–especially in light of recent comments by Shell’s retiring CEO Pete Voser that the company would not be able to build all three of its previously announced big projects, which includes the PA ethane cracker (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). But several recent things have happened to indicate the PA cracker plant project is alive and well, including the announcement yesterday that Shell has extended their option to purchase the proposed plant site in PA and intends to start demolishing existing buildings on the site in early 2014…
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At the end of October, MDN told you about comments from Shell’s retiring CEO Peter Voser that stoked fears that the previously announced Pennsylvania ethane cracker plant they may build was in doubt (see 
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 
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 
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.
It seems like MDN has been writing about Shell’s proposed $2 billion ethane cracker plant for like, ever. You can 
Time for Shell to get serious about whether or not they plan to build a $2 billion ethane cracker plant in Monaca, PA. Shell announced yesterday they will have something akin to a pipeline open season, a period of time when drillers can bid on capacity to send the plant (should it be built) their locally-produced ethane supplies. The bidding period will run from August 27 through October 4 and will give Shell a good idea of just how much ethane will be available for them to “crack” at the plant.
It seems as if “out of the blue” the Upper Devonian Shale (UD) has popped up on the radar screen–quite suddenly and in quite a big way. The Upper Devonian is located a few hundred feet above the Marcellus Shale layer in the northeastern U.S. Over the past few weeks, MDN has highlighted stories of drillers expanding their UD drilling programs–including CONSOL, Rex Energy, Range Resources and EQT Corporation (see 