COLUMBUS — Gov. John Kasich is pursuing the multibillion-dollar ethane-cracker facility that Shell Chemicals LP plans to build in Ohio, West Virginia, or Pennsylvania to capitalize on the increasing harvest of natural gas from Marcellus shale. The American Chemistry Council estimates that the plant would generate 17,000 jobs in chemistry and other industries as well as $1 billion in wages and $169 million in tax revenue.
A decision on the site is expected early this year.
Mr. Kasich flew to Houston in November to woo company officials. He handed them a stack of supportive letters signed by Republican teammates and Democratic rivals.
Link to original article: http://www.toledoblade.com/Energy/2012/01/03/Ohio-pursues-ethane-cracker-plant.html
More about the cracker plant….
Ohio trying to lure $2B natural gas processing plant
Shell could build the plant, expected to create hundreds of jobs, in West Virginia, Pennsylvania or Ohio, the newspaper reports. The plant, called a “cracker,” would help turn ethane into ethylene for plastic, the newspaper reports.
All three states have offered tax breaks to the company, and Gov. John Kasich flew to Houston in the fall to pitch Ohio to company executives, the newspaper reports. Ohio has not divulged the details of the incentive package it offered Shell.
Link to original article: http://www.bizjournals.com/columbus/morning_call/2012/01/ohio-trying-to-learn-2b-natural-gas.html
From Cleveland Plain Dealer
“Shell is the first of the major oil companies to make a big investment,” said Edward “Ned” Hill, a professor of economic development at Cleveland State University. “Where that cracker ends up could end up influencing the regional headquarters of Big Oil.”
All three states are reported to be offering tax breaks and other incentives to try and lure Shell, which has given no hint of its affections.
“When we select our preferred site we will announce it,” Shell spokeswoman Alexandria Smith said Wednesday. “That will probably be February.”
Major cities like Cleveland are not considered contenders but they could certainly be affected. Any location will likely be rural, but not remote.
The plant needs hundreds of acres of land, according to Dan Carlson, Shell Chemical’s general manager of new business development in the Americas. Shell would also like access to railroads, river barges, a skilled workforce and university researchers, Carlson said via email.