Shell Takes Final Investment Decision To Build A New Petrochemicals Complex In Pennsylvania, US.

HOUSTON, June 7, 2016 /PRNewswire/ -- Shell Chemical Appalachia LLC (Shell) has taken the final investment decision to build a major petrochemicals 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.

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."

Cautionary Note

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With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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SOURCE Shell