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12/27/2013

Governor Corbett: Shell Extends Land-Option, Proposed Ethane Cracker in Pennsylvania Remains on Capital Project Short List

News for Immediate Release

Dec. 26, 2013

Governor Corbett: Shell Extends Land-Option, Proposed Ethane Cracker in Pennsylvania Remains on Capital Project Short List

Harrisburg – Governor Tom Corbett commented on today’s announcement that Horsehead Corporation has extended its land-option agreement with Shell Chemical LP for a site near Monaca, Beaver County and has contracted to begin demolishing select buildings at the site early next year.

“Pennsylvania’s world class energy industry, our skilled and productive workforce and our ideal location are attracting companies like Shell to invest in our commonwealth and create thousands of family-sustaining jobs,” Corbett said. “Today’s announcement is another positive indication for Shell’s proposed plant in Beaver County and I am committed to working in a bipartisan way to keep this multi-billion dollar project moving forward.”

Last month, Shell narrowed its short list of major capital projects in North America, following the announcement that the company will not move forward with the proposed Gulf Coast gas-to-liquids (GTL) project in Louisiana and will suspend any further work on the project.

In August, Shell announced it has secured ethane commitments and is seeking additional ethane suppliers to feed the proposed facility. Securing ethane supply is one of the key components of Shell’s ongoing site evaluation process. 

Just six years ago, Pennsylvania imported 75 percent of our natural gas needs. Today, we are competing with the Gulf Coast, a long established energy hub, for major energy capital projects,” Corbett said. “New manufacturers are arriving and building plants and companies with deep histories in the field are expanding and branching out to the energy supply chain. The potential for growth is endless and we are making Pennsylvania a key player in the conversation.”

Additional terms of the extension beyond statements provided by Horsehead and Shell were deemed confidential.

For more information about Shell’s multi-year evaluation process, visit shell.com/chemicals/appalachia.

Media contact:

Valerie Caras, Governor’s Office, 717-783-1116

Steve Kratz, DCED, 717-783-1132

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