Shell Cracker Plans to Build Truck Facility in Washington County

Please note: Thanks to MDN reader Todd S. from Washington County, PA for correcting our map/distance from the Starpointe Business Park to the cracker plant location in Monaca, PA. Our previous Google map showed an incorrect distance (46 miles). It is actually ~28 miles. The story below has been corrected to reflect it.
It looks like Shell is going to build a trucking dispatch operation for its ethane cracker–but it won’t be located anywhere near the cracker site. The new trucking facility will be located in Washington County, PA–a half hour away. MDN was one of the first to announce Shell’s final investment decision to build an ethane cracker plant (that we now know will cost $6 billion) in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). A lot has happened at the site, situated on a former zinc smelting plant site in Monaca, PA. Shell built a new access road for trucks accessing the site–a concrete bridge overtop an adjacent highway–even before the final investment decision (see Shell Begins Building Bridge to PA Cracker Plant Site). Shell leased a huge office building and parking lot near the site (see Shell Leases 76,000 Sq Ft Office Space Near Cracker Plant Site). Shell even leased part of a nearby mall parking lot, for workers to park there (see More Evidence that the Shell Ethane Cracker Plant in PA is a Go). Everything we’ve seen thus far seems to be activity in and around Monaca–in Beaver County. That is, until now. A meeting yesterday of the Washington County (PA) Board of Commissioners hinted that Shell is about to build a facility there. Yesterday the commissioners voted to approve a new 31-acre development with a “90-bay distribution center and trucking dispatch operation” at Starpointe Business Park, in Hanover Township. The resolution contained this language in describing the project: “…to construct a two-unit building for Shell.” County officials and Shell officials won’t confirm a thing, but it seems pretty likely Shell is planning to build a big trucking facility in the business park, which is (by our calculations) about 28 miles and a half hour from the cracker site…
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In January, MDN reported on a well pad fire at Rice Energy’s Papa Bear well pad in Somerset Township (Washington County), PA (see 
Peters Township, the most populous township in Washington County, PA, is one of the seven selfish towns that sued the state in 2012 over the zoning provisions in the then-new Act 13 law, eventually winning at the PA Supreme Court level (see
In October 2016, MDN reported that electric company FirstEnergy had begun construction of a new electric substation in Washington County, PA to provide electricity to “support two natural gas processing facilities being developed in the area” (see
For years we’ve followed the story of Range Resources and their (former) wastewater impoundments in Washington County, PA. The PA Dept. of Environmental Protection (DEP) fined Range a whopping $4.15 million for violations in September 2014 (see
The Pittsburgh, PA region has been truly blessed by the Marcellus Shale industry. Largely because of the Marcellus, last year (2016) saw the biggest year ever for capital investment in the 10-county Pittsburgh region–a mind-blowing $10.2 billion of investment! It is the highest capital investment in a single year ever. Now mind you, not all of that money actually got invested last year. Some of it will come in dribs and drabs over the next several years. But all of that $10.2 billion was committed to in 2016. Last week the Pittsburgh Regional Alliance (PRA) issued its annual Business Investment Scorecard. The report (read it below) finds that more than half of last year’s capital investments pledged to Pittsburgh region came from a single project–the $6 billion Shell ethane cracker. The report also found another $3.11 billion worth of investment related to shale gas (processing plants, gas-fired power plants, etc.). Add it all together, and over $9 billion of the $10.2 billion committed last year is due to the Marcellus industry. To which we say, Pittsburgh should bow down and kiss some shale rock…
It’s hard to keep track of all the Marcellus and Utica Shale-fired electric plants being planned, built and going online. We recently highlighted a list of 11 such projects getting built in Ohio (see
Several southwest Pennsylvania Republican lawmakers (and a Democrat lawmaker) addressed the League of [Liberal Democrat] Women Voters at the group’s annual question-and-answer session with area legislators in Washington, PA on Friday. The Lib Dems attending likely got more than what they bargained for, as the legislators who addressed them stuck up for fossil fuels. The moderator asked a question about so-called clean energy jobs and investing, and promptly got schooled about REAL clean energy–i.e., fossil fuels!…
Rice Energy turned in it’s 2016 update this week, along with a look at what’s coming in 2017. As for top line financial numbers, Rice lost about the same in 2016 as they did in 2015: A loss off $298 million in 2016 vs. a loss of $291 million in 2015. Although Rice owns and drills on a small acreage position in the Texas Barnett Shale, the vast majority of their focus continues to be in the Marcellus/Utica. The company plans to spend $1.5 billion in 2017, broken out as follows: $1.035 billion for drilling and completion activity in the Marcellus/Utica shale plays; $225 million for land purchases; and $315 million spent by Rice Midstream ($255 million for gas gathering and compression and $60 million on water services). With that money, Rice expects to drill 75 new wells and complete another 55 wells in the Marcellus in 2017. In the Utica, Rice plans to drill 20 new wells and complete 20 wells in 2017. Land acquisition will happen in three counties: Greene and Washington Counties (in PA), and Belmont County (in OH). How much will they pay, on average, to lease new acreage? We have an answer for that…
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