News Post
Shell ceases construction of $6 billion ethane cracker due to coronavirus factors
Shell recently announced that it has suspended the construction of its planned ethane cracker known as the Pennsylvania Petrochemicals complex in Potter Township, Pennsylvania. This project had been planned to begin commercial startup in the 2022 timeframe, but that date is possibly dubious with this setback considered. This ethane cracker plant is considered one of the largest construction projects in the United States and is the first major U.S. project of its kind to be built out of the Gulf Coast region in 20 years.
This suspension of activities was stated as a temporary measure, but no date was given for resumption of work. Shell did state its intentions for a phased ramp up of activities, likely causing delays for the project. This ethane cracker is intended to take ethane from a plentiful Marcellus and Utica shale gas feedstock and convert it into 1.5 MMtpy of polyethylene and associated derivatives.
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