Just curious if anybody has seen continued work by Shell at the old Horsehead plant. By the same token, has anybody heard any rumblings as to how things are coming along?
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Thanks for the information!
Yes if their costs go down via cheaper feedstock (ethane) and cheaper nat gas to provide the heat/energy needed for the process then they would be happy. But remember their competitors input costs would go down as well. Their best bet would be having users of their product nearby or at least in the US. Lots of factors get involved.
At least that's the way I see it.
I drove by there last week..... and they are REALLY BUSY ! YEAH !
http://s06.static-shell.com/content/dam/shell-new/local/corporate/c...
I came to the same conclusion Gary..... and still feel this plant will be built as well.
ethane cracker plant decision
Mar 2, 2015, 2:06pm EST Updated: Mar 2, 2015, 5:00pm
The former Horsehead Holding Corp. plant in Potter Township that has been torn down to perhaps make way for the Shell cracker.
Sam Kusic
Staff Reporter-
Pittsburgh Business Times
Email Despite a broad warning about the potential impact of a severance tax on investments in Pennsylvania's shale gas fields, some Beaver County officials said they don't believe Gov. Tom Wolf's proposed severance tax would lead Royal Dutch Shell to scuttle plans for its ethane cracker plant.
"I would find that hard to believe that would be a development killer," said Jack Manning, chairman of the Beaver County Chamber of Commerce's economic development task force.
Manning said even if such a tax is enacted, it will become part of the business landscape, and Shell, as an organization, is good at figuring out how to turn a profit in any number of economic landscapes.
"They're going to have a business plan to make the money they need to make this project work," he said.
To generate additional funding for public education, Wolf is proposing to levy a 5 percent tax on the value of gas at the wellhead, plus an additional 4.7 cents per thousand cubic feet. Wolf is expected to discuss the tax and other tax initiatives during his budget address Tuesday.
The imposition of a severance tax was a key plank in Wolf's campaign platform, although he was warned that imposing such a tax could jeopardize development of Pennsylvania's shale gas fields, according to David Spigelmyer, president of the Marcellus Shale Coalition.
Spigelmyer said Wolf sat down in August with industry representatives, Shell officials among them. He said the group collectively delivered a broad message, which was that Wolf wouldn't want to jeopardize the opportunity presented by natural gas development.
"We communicated that an erroneous tax could reel back capital investment," Spigelmyer said.
He said the meeting occurred at around the time natural gas prices had began to soften, causing producers to begin rethinking their capital investment plans. Since then, the industry has lopped $9 billion in Appalachia investments, he said.
State Rep. Jim Christiana (R-Monaca), said that the pros and cons of severance tax aside, Shell has not connected state tax policy to their final decision on the plant. The plant would take ethane derived from southwestern Pennsylvania shale gas wells and convert into ethylene.
"Shell has maintained to us since March 2012 that the No. 1 concern and hurdle to overcome is the ethane supply to support that plant," he said.
Shell said in a statement that it has a supply under contract.
"Shell has always maintained that the ethane supply for the proposed facility would come from the region. Since April 2014, Shell has noted that the project's current supply situation is strong – with approximately 10 contracts in place lasting up to 20 years," said Shell's statement.
The company said that at no time has it linked the potential future of the proposed petrochemical facility with the proposed severance tax.
That said, Christiana said he believes the severance tax as proposed could affect the state's position as a leading natural gas producer and that the governor's plan is unrealistic.
Manning said the tax is a moot point — he doesn't believe Wolf is going to find support for it. He speculated that the more likely outcome is that it will be a levy of some lesser percentage, combined with a rebalancing of taxes elsewhere.
He said Wolf faces not only resistance from a Republican-controlled House and Senate, but municipalities that receive impact fee money as well. Wolf has said the impact fee would be rolled into the severance tax.
"That's a lot of headwind that Gov. Wolf is facing on getting that through," Manning said.
Sam Kusic covers energy for the Pittsburgh Business Times.
A customer comes in that is now working with the crew that is extracting the concrete foundations etc. Says they should be done around Sept. He/She doesn't believe dirt can be moved for the covering of the site before then.Take it for what it is worth.
Oh, I asked how thick the concrete can be, he/she said as big as this room, i.e. 20+' by 20+', then went on to describe how they are doing it. Nothing like brute force!
Loose lips sink ships and jeopardize jobs ; )
Of course all this has to be treated as hearsay.
I know this is about how things are going with the proposed Shell Cracking Plant but I am curious to know what people know about what is going in behind the Beaver Valley Mall where the Humane Society was? I heard of many things. I heard of a Sheetz that will sell natural gas for fleet vehicles and the regional headquarters for Columbia Gas. But I don't know what is true. I do know that the area is "pad ready" for development and it encompasses a very large area.
This is what you are looking for... I was told extra office space is for rent/lease as well.
http://www.timesonline.com/news/local_news/columbia-gas-facility-ne...
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