Royal Dutch Shell plant....any word on how its coming along?

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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Permalink Reply by cattlerancher on October 14, 2015 at 10:42pm

Based on this article patience will be a virtue when it comes to the Shell cracking plant coming to Beaver County. 

http://eaglefordtexas.com/news/id/158748/ohio-pennsylvania-west-vir...

Permalink Reply by craig on October 16, 2015 at 10:30am

fwiw dept:

Awhile back some members here noticed no activity and equipment leaving the work site. My insider tells me what happened is that Brandenburg wasn't being paid in a timely fashion...possibly for missing deadlines I suspect. They pulled out back then and Trumbull Corp took over the job. Shell is spending around $2 - 4 million a week, every week, on the site as I was told.

This plant is going to be built from my perspective. Patience is all we need to cling to, as cattlerancher says.

Permalink Reply by Richard M on October 16, 2015 at 3:03pm

how dose this affect us . they are going to build the plant will this raise the price of gas or will they just be buying gas cheap 

Permalink Reply by Gary on October 19, 2015 at 7:52am

Here are a few pictures of the bridge that is being built.

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Permalink Reply by Frank Nesmith on October 19, 2015 at 8:06am

From what I've read, they need the price of gas to stay down to build so they can buy the ethane cheaper. If gas takes a spike, it's not worth the investment. So for those getting drilled on, it's not good news, but for those that get jobs there, it is.

Permalink Reply by Trapper on October 20, 2015 at 8:21am
Ethylene was being made when natgas was at historic highs too. The US was thought to be running out of gas until technological advances allowed the production from shale.
Like Todd says , we are sitting on vast , producible , reserves and it is spurring Shell on.
Permalink Reply by Todd on October 20, 2015 at 3:52pm
90 percent of the nation's natural gas growth will come from the NE through 2020 with most of that growth coming out of the SW Marcellus and Utica.
Currently, pipeline infrastructure is catching up with production at such a pace in our area that there is forecast to be a surplus of pipeline capacity by 2018 at which time SW Appalachia will fetch Henry Hub pricing.
That's step one. We're still in the pre-game.
Permalink Reply by craig on October 19, 2015 at 9:17am

Gas is going to be cheap for some years regardless if they build the cracker or not. Building the cracker plant will bring other industries that will need the gas as well. The volume of dry gas needed is available here long term. The liquids are here and nearby that are needed. The ideal property is available.

The gas industry isn't here because they wanted a cracker plant built here...The gas companies are here and the cracker plant will be here because of what we have.

In the long run it is mostly positive for us, I believe.

Permalink Reply by cattlerancher on October 19, 2015 at 9:51am

I couldn't say it any better than what Craig just said about gas prices, the O/G industry, etc. 

Despite the recent article I posted previously, I predict that Shell will announce that they are committed to building the cracker plant no later than the first quarter of 2016.  Its probably wishful thinking on my part that they announce by the end of 2015.  Time will tell.  One thing people should keep in mind is that in Shells Clean Air Permit Application (which I read some time ago) Shell stated something along the lines that they could be up and running in late 2018 if I remember correctly.  If that holds true, a very big if, then they have to announce their commitment reasonably soon.    

Permalink Reply by craig on October 19, 2015 at 10:38am

Thanks, was trying to be brief and to the point!

I gave up on guessing when they would announce. I felt it was going to be last June.

They may well start building it before they announce, hehe.

Permalink Reply by Gary on October 19, 2015 at 11:27am

If they don't build it that will be the bridge to no where..I believe they are building it.. if not shell then some one else..

Permalink Reply by Todd on October 19, 2015 at 12:49pm

Nice pictures Gary. 

The cracker will be built along with all of the other billions of dollars worth of infrastructure.   

I couldn't imagine what they're all gearing up to do with the mountain of gas under our feet?

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