The company has signed an agreement to provide its ethane from the Utica Shale to Royal Dutch Shell's proposed multi-billion cracker plant in Beaver County, Pa., if that plant gets built.
Thread is wrong...just an option! Don't know haw many plants can be supported. Some say three, others say none as its cheaper to use pipelines to ship it existing plants on the Gulf Coast.
Chip I believe Jan.,2014 is the end of the current option period with Horse Head but it has been extended a couple of times before. Hopefully this will be the big announcement date. Cross your fingers! Aside from rumors to the contrary , It appears that tangible things are happening that indicate it will be a go.
Shell is still active.
Gary, Thanks for posting the latest news on the topic :)
Per a post of "Gas heir" on November 22, Shell is initiating its PR program for Western PA: "Shell was doing a presentation at the Lakeview Middle School. He said our school was chosen from a list of 100's of schools that applied because of Shell's activity in the area."
From the supply side, there will be enough ethane produced in the Utica/Marcellus region to support several crackers. Furthermore, most of the domestic demand for ethylene derivatives is in our part of the country. There are several pipeline projects in the works to deliver "y-grade" NGL's to the gulf Coast for processing. But that is an expensive proposition as producers pay a stiff transportation fee.
IMHO, if one of these projects finally gets off the ground, others will follow. Also, there will be affiliated downstream processing plants built to convert ethylene into useful polymers. The latest WVA plant under consideration in Parkersburg, WVA includes downstream processors to convert ethylene into polyethylene.
Must be a load of NGL potential. Didn't I read on GMS that the Tennessee pipeline was going to be re-fitted to send NGL's south? In addition to this and Shell's plans and W.V. potentially getting a Cracker , It sure as heck would appear we have an abundance of product!
Marcellus Drilling News reports the most profitable shale plays in the US are the Marcellus in SW PA and WV Panhandle followed closely by (if not tied with) Eastern Ohio's liquid rich zone of the Utica. CHA-CHING!!!!
Kinder Morgan & Markwest have also announced a joint project to transport NGL's to the Gulf Coast. Even with all that, there is still an overabundance of supply! Of course, they're all just "studying" the projects at this point.
The producers would love to have a local market and avoid the shipping fee.
Again, IMHO, it seems foolish for all parties to transport this stuff 1000+ miles to the Gulf coast, when at the end of the day much of the resulting products come back this way in the form of railcar loads of polymer feedstock.