Shell Chemical acquires land for proposed new Appalachia ethane cracker

Previous site owner Horsehead Corp. has sold its land in Monaca, Pennsylvania, to Shell for a proposed petrochemical development, officials with Horsehead confirmed on Wednesday.

Terms of the deal were not disclosed. Horsehead used to operate a zinc smelter at the facility, which is located along the Ohio River in Beaver County northwest of Pittsburgh.

Shell is in the midst of a multi-year review of the site that includes environmental analysis, engineering design studies, evaluation of ethane supply and economic viability.

"This announcement marks another important milestone in the progress toward Shell's final investment decision to construct a world-class petrochemical facility on this site," said Dennis Yablonsky, CEO of the Allegheny Conference on Community Development and the Pittsburgh Regional Alliance.

"We appreciate Shell's continued confidence in our region as a competitive location for energy-related investment. We remain optimistic that this new facility will locate here."

If built, the facility would include an ethane cracker with an average capacity of 1.5 MMtpy of ethylene; three polyethylene (PE) units with a combined production of 1.6 MMtpy; and power and stream generation, storage, logistics, cooling water and water treatment, emergency flare, buildings and warehouses.

The proposed complex would be the first major US project of its type to be built outside the US Gulf Coast region in 20 years. Shell says locating the facility close to both supply and markets would reduce economic and environmental transportation costs and provide regional plastic manufacturers with more flexibility, shorter supply chains and enhanced supply dependability. 

Shell would source ethane feedstock for the complex from the nearby Marcellus and Utica shale formations.