Shell Evaluates Site in Beaver County to Build $3.2B Gas Processing Facilities

by Adriana Pop, Associate Editor

Shell Oil Co. is assessing whether to build a multibillion-dollar petrochemical complex that would process gas locally produced from the Marcellus Shale in Appalachia. Shell said it would reach a decision in 18 to 24 months.

Shell Chemical LP signed a land option agreement with Horsehead Corp. in March to evaluate a site in Beaver County, where it could build the plant. The company chose a 300-acre area near Monaca, close to the Conway Railyards and about 15 miles from the Pittsburgh International Airport.

According to the American Chemistry Council, the potential economic impact for the Pittsburgh region is $3.2 billion in investment that would lead to the creation of more than 10,000 permanent jobs in the chemical and supplier industries. Furthermore, Shell expects 10,000 construction jobs would result from site development.

The petrochemical plant would chemically “crack” ethane into ethylene, the raw material used to make plastics and other materials. Officials believe that the construction of the plant could lead to the establishment of other major plastics manufacturers in the area.

Sylvie Tran, development manager-Appalachia for Shell Exploration and Production Co. told the Pittsburgh Business Times that the company needed time to assess the commercial feasibility of the plant. Shell is also involved in elaborating the project’s environmental analysis with the Pennsylvania Department of Environmental Protection.

In other news, biomedical firm Invivodata, Inc. has signed a lease for approximately 28,000 square feet of space in the seven-story Commerce Court building located at Station Square in Pittsburgh’s South Side. The 378,000-square-foot office building belongs to Cleveland-based Forest City Commercial Management Inc. and includes ground-floor retail space.

“This milestone move of our corporate headquarters reflects our rapid growth, positions us to support the continued growth we anticipate, and reinforces our commitment to the Pittsburgh area”, said Doug Engfer, president and CEO of Invivodata.