Shell plans world-scale chemical plant in USA

Shell plans world-scale chemical plant in USA

10:14 AM, 9th June 2011
Shell plans world-scale chemical plant in USA
Ben van Beurden, Executive Vice President Chemicals, Shell.

TEXAS, US: The newly planned cracker would process ethane from Marcellus natural gas to produce ethylene, one of the primary building blocks for petrochemicals. Shell is evaluating derivative choices and the leading option is Polyethylene (PE), an important raw material for countless everyday items, from packaging and adhesives to automotive components and pipe. Most of the PE production would be used by northeastern US industries.

“Building an ethane-fed cracker in Appalachia would unlock significant gas production in the Marcellus region by providing a local outlet for ethane. This fits well with our strategy to strengthen our chemicals feedstock advantage and would be another step in growing our chemicals business to meet the increasing demand for petrochemicals,” said Ben van Beurden, Executive Vice President Chemicals, Shell.

Demand for PE in North America is expected to grow, so the economic and efficiency benefits of a regional cracker make this configuration attractive. “US natural gas is abundant and affordable. Shell has the expertise and technology to responsibly develop this vital energy resource, including associated products such as polyethylene for the domestic market,” said Marvin Odum, President, Shell Oil Company.

Selection of the site for the cracker and derivative units would be determined in the next phase of this project. Building the facility would be subject to receiving all applicable permits.

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