Shell taking bids from ethane suppliers for proposed Pennsylvania cracker
3:15 PM MDT | August 27, 2013 | Clay Boswell
Shell Chemical has begun accepting bids from ethane suppliers for its proposed petrochemical complex in Pennsylvania, according to a company statement issued on 27 August.
Shell expects that an upstream Shell affiliate, Shell Western Exploration and Production, would provide a portion of the ethane supply, and the company has also secured supply commitments from CNX Gas, Hilcorp Energy, Noble Energy, and Seneca Resources.
The project will have to pass a series of critical milestones before Shell can make a final investment decision on whether to proceed, says Michael Marr, downstream communications manager - US chemicals at Shell.
“We need to confirm the suitability of the site, secure ethane feedstock supply, complete the engineering and design work, confirm the support of customers for our products, receive all the necessary permits and confirm that the project is economically robust and competitive,” he says.
Shell recently extended through the end of 2013 an option to buy a site at Monaca, PA, for the project, which would center on a world-scale ethane cracker. Polyethylene and monoethylene glycol units are also being considered, the company says.