Saturday, November 08, 2014MONACA, Pa. -- Royal Dutch Shell has exercised its option to purchase the former Horsehead Holding Corp. site here, a signal that the giant energy company is moving closer to building a multibillion-dollar ethane cracker plant.
Even so, Shell said that just because the company purchased the land doesn't mean it's made a decision on whether to proceed with the project.
“This is a good decision but it does not mean that we have [made] the investment decision to proceed with the project,” Ate Visser, the vice president with Shell Chemical, according to published reports.
"This is not a final decision," added Kimberly Windon. "This step means that we have determined the site is suitable if we decide to build a proposed cracker."
Shell announced in the spring of 2012 that it was considering building a "cracker" plant at the site, which would process ethane gas piped from wells in the Utica and Marcellus shale plays in eastern Ohio, Pennsylvania and West Virginia.
The proposed plant would convert ethane, a natural gas liquid, into ethylene, a product that is a base ingredient for many types of plastics and other materials.
Shell has scheduled a public informational session for Thursday, Nov. 13, at the Lincoln Park Performing Arts Center in Midland, Pa. to address questions related to the plant.
Economic-development officials in both Ohio and Pennsylvania said that a cracker plant could help lure additional chemical companies to the region. The 340-acre Horesehead complex, located in Butler County, is just 40 miles southeast of Mahoning County in northeastern Ohio.
If built, the cracker would process 105,000 barrels of ethane per day, and Shell has announced that it has contracted with at least 10 regional producers of ethane to support the project.
MORE:
Shell to buy Horsehead plant in Beaver County
Locals near Horsehead make way for Shell property
Published by The Business Journal, Youngstown, Ohio.
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