Hi John IMO If Irma were to hit Texas and LA forcing an extended damage or shut downs. I think spot prices of effected chemical & plastics would go up greatly. For those who have multiple plants outside of effected area. IMO full capacity seems in order. I see a lot of force majeure going on till plants get up and running again. For those unaware-Force majeure is a French term literally translated as "greater force", this clause is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations. I'm just thinking that global suppliers would have to pick up any lost slack to supply any pent up demand by US plastic MFG. Should the disaster scenario pan out Shell should benefit given it's PENN location. If Ohio or Penn would have it. Maybe Exxon will decide to build that Cracker elsewhere, Ohio.<G> In the big picture shale gas isn't going away. The low cost here should be a driving force for any new plants using that feed stock to locate in the US. I hope this new hurricane doesn't cause problems. I could only venture a guess what would happen if it did.
Excited about Cracker Plant News in Western Pennsylvania
Wednesday, June 8, 2016 @ 12:06 AM
Posted by Joanne Bauer
Screen Shot 2016-06-08 at 8.58.31 AMHARRISBURG, Pa. – Calling it a win for the economy of western Pennsylvania, Rep. Donna Oberlander (R-Clarion/Armstrong/Forest) yesterday celebrated the news that Shell Chemical Appalachia will build an ethylene cracker plant in Beaver County.
“For years, officials in western Pennsylvania have been fighting hard to convince Shell that our state is the perfect place to build its massive petrochemical complex,” Oberlander said. “The company estimates that nearly 6,000 construction jobs and 600 permanent jobs will be created by this plant, which will refine natural gas to make many of the plastics we use every day.”
Oberlander noted that the Marcellus and Utica shales helped to position western Pennsylvania well, and that was enhanced by our location in the northeast part of the country, a strong workforce and lower taxes.
Oberlander010715PORTRAIT“This decision would not have gone our way if we would have given in to additional taxation on the natural gas industry,” Oberlander said. “The construction of this plant will generate millions in tax revenue, from property taxes, income taxes and business taxes already on the books. We didn’t need to add another tax to an industry that is still struggling from low natural gas prices. This news today sends a strong signal that business-friendly policies can lead to successful outcomes.”
Oberlander also was hopeful that this boost in the western Pennsylvania economy will benefit the 63rd District.
“Although the plant is in Beaver County, the ripple effects will likely lead right here to the 63rd District,” she said. “Shell will need resources from all over western Pennsylvania to build the plant and supply the natural gas for its refinery. I’m hopeful that residents and businesses throughout Clarion, Armstrong and Forest counties will benefit.”
About the Proposed Facility
Shell Chemical Appalachia LLC (Shell) has taken the final investment decision to build a major petrochemical complex, comprising an ethylene cracker with polyethylene derivatives unit, near Pittsburgh, Pennsylvania, USA. Main construction will start in approximately 18 months, with commercial production expected to begin early in the next decade.
The complex will use low-cost ethane from shale gas producers in the Marcellus and Utica basins to produce 1.6 million tonnes of polyethylene per year. Polyethylene is used in many products, from food packaging and containers to automotive components.
shell-fid-pennsylvania-petrochemicals-complex-location-map
The facility will be built on the banks of the Ohio River in Potter Township, Beaver County, about 30 miles north-west of Pittsburgh. As a result of its close proximity to gas feedstock, the complex, and its customers, will benefit from shorter and more dependable supply chains, compared to supply from the Gulf Coast. The location is also ideal because more than 70% of North American polyethylene customers are within a 700-mile radius of Pittsburgh.
The project will bring new growth and jobs to the region, with up to 6,000 construction workers involved in building the new facility, and an expected 600 permanent employees when completed.
“Shell Chemicals has recently announced final investment decisions to expand alpha olefins production at our Geismar site in Louisiana and, with our partner CNOOC in China, to add a world-scale ethylene cracker with derivative units to our existing complex there,” said Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global Chemicals business. “This third announcement demonstrates the growth of Shell in chemicals and strengthens our competitive advantage.”
exploreclarion.com
P.S. OLIN-Now here are some historical charts of mine form my software of the day. Not to fancy but a chance to get back to historical prices on CA?
Message 24537820 |
