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Shell Chemical Begins Bid Round for Ethane Suppliers
HOUSTON -- Shell Chemical LP today updated its site evaluation process for the petrochemical complex the company is considering for a site in near Monaca, Pa., telling reporters that it is “seeking ethane suppliers.”
Shell began accepting bids Monday and will continue to accept them through Oct. 4. The proposed $3.2 billion-plus cracker plant would process "wet" ethane gas into ethylene, a primary ingredient used in plastics and other material.
“Securing additional ethane supply is one of the key components in determining next steps as part of the ongoing site evaluation process,” the company said. “If the complex is built, Shell Chemical expects that its upstream affiliate, Shell Western Exploration and Production Inc., would provide a portion of the ethane supply for the proposed petrochemical complex. Shell Chemical has already secured supply commitments from CNX Gas Company LLC, a subsidiary of Consol Energy Inc, Hilcorp Energy Co., Noble Energy Inc., and Seneca Resources Corp.”
The proposed $3.2 billion-plus cracker plant would process "wet" ethane gas into ethylene, a primary ingredient used in plastics and other material.
Shell Chemical is a division of Royal Dutch Shell. In March 2012, the company announced that it signed a land option agreement for the former Horsehead zinc processing site near the Ohio River in Beaver County, Pa. At that time, Shell said that it "looked at various factors to select the preferred site, including good access to liquids rich natural gas resources, water, road and rail transportation infrastructure, power grids, economics, and sufficient acreage to accommodate facilities for a world scale petrochemical complex and potential future expansions.”
According to the today’s update, “Shell Chemical still has several critical milestones to achieve before making a final investment decision on whether to proceed with construction of this proposed complex.”
Published by The Business Journal, Youngstown, Ohio.
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