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OH – PA – WV Want Shell Ethane Cracker

by Kenneth E. DuBose on August 30, 2011

An ethane cracker that is proposed by Shell will be built in the Marcellus Shale region of Ohio, Pennsylvania, and West Virginia. The petrochemical plant will be a major development for whichever state Shell chooses. You can bet those states are competing as we speak.

For mineral owners, this adds value to hydrocarbons beneath your property by processing valuable products in the region instead of the gas being shipped to the Gulf Coast for processing. Higher valued hydrocarbons means you get drilled faster and should recognize better prices over the long run.

West Virginia is hoping to land a big ethane-fed cracker to capitalize on its abundant Marcellus shale-gas reserves, but it isn’t the only state in the running.

Shell announced in June that it is developing plans for a world-scale ethylene production facility with integrated derivative units in the Appalachian region of the US, to take advantage of the area’s Marcellus shale-gas reserves.

“Selection of the site for the cracker and derivative units would be determined in the next phase of this project,” the Anglo-Dutch company said in a statement.

“Building an ethane-fed cracker in Appalachia would unlock significant gas production in the Marcellus region by providing a local outlet for the ethane,” Ben van Beurden, Shell executive vice president for chemicals, said.

Read the full news release at icis.com

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