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Released June 17, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pennsylvania leads the U.S. Northeast region in potential capital and maintenance project investments in the Chemical Processing Industry, largely as a result of Shell Chemical's (NYSE:RDS-A) (The Hague, Netherlands) consideration of an ethylene and derivatives facility near Monaca. However, the Shell project would have to overcome several infrastructure challenges to make it feasible, putting its future in question.
According to Industrial Info's Industrial Project Database, there are 46 active chemical processing projects planned in the Northeast, which includes Pennsylvania, New York, Delaware and New Jersey, with an estimated investment value of $4 billion.
Pennsylvania has 18 projects valued at $3 billion, including $2 billion for Shell's potential grassroot ethylene plant. However, Shell has yet to decide whether to proceed with the project, which would take advantage of ethane from the Marcellus Shale, and doubts have been cast as to whether the project will ever be built.
Shell Chemical, with Jacobs Engineering Group (NYSE:JEC) (Pasadena, California), Bechtel Corporation (San Francisco, California) and Linde Group (Munich, Germany), is continuing with a front-end engineering design (FEED) study of the 1.5 million-ton-per-year plant, and expects to reach a decision on whether to continue moving forward by February 2015. Should the project go ahead, it would include several downstream derivative units, increasing the overall investment significantly: the construction of a linear, low-density polyethylene unit addition, valued at $300 million, a high-density polyethylene (HDPE) unit addition, and a slurry HDPE unit addition.
Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry, said the Northeast was once the home of a large number of chemical processing facilities; but in his opinion, it no longer has the necessary infrastructure the make the Shell project feasible. Developing such an infrastructure to turn ethylene into downstream products and move them to market would be cost-prohibitive, especially given the fact that the U.S. Gulf Cast region already has such an infrastructure in place, including major port facilities and an extensive ethylene pipeline network.
Hamblet said that gas from the Marcellus Shale is now shipped to Canada, the Gulf Coast and Europe, and he expects that trend to continue.
For more information, see May 20, 2014, article - Marcellus Gas Transforms Chemical Processing, Gas Production Industries.
View Project Report - 300043738 300159929 300159923 300159934
New York leads in the number of chemical processing projects: 19, with an estimated total investment value of $700 million. The largest of these is the Syracuse Onondaga Lake Cleanup, valued at $451 million. Honeywell International (NYSE:HON) (Morristown, New Jersey), with Parsons Corporation (Pasadena, California), O'Brien & Gere Engineers (Syracuse, New York) and Sevenson Environmental Services Incorporated (Niagara Falls, New York), has been contracted to perform water treatment on about 3 billion gallons of water, dredge about 2 million cubic yards of soil from the lake, and cap about 2.8 million cubic yards of material in order to remove chemicals from a former production plant. Completion is expected by September 2017.
View Project Report - 14002948
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
According to Industrial Info's Industrial Project Database, there are 46 active chemical processing projects planned in the Northeast, which includes Pennsylvania, New York, Delaware and New Jersey, with an estimated investment value of $4 billion.
Pennsylvania has 18 projects valued at $3 billion, including $2 billion for Shell's potential grassroot ethylene plant. However, Shell has yet to decide whether to proceed with the project, which would take advantage of ethane from the Marcellus Shale, and doubts have been cast as to whether the project will ever be built.
Shell Chemical, with Jacobs Engineering Group (NYSE:JEC) (Pasadena, California), Bechtel Corporation (San Francisco, California) and Linde Group (Munich, Germany), is continuing with a front-end engineering design (FEED) study of the 1.5 million-ton-per-year plant, and expects to reach a decision on whether to continue moving forward by February 2015. Should the project go ahead, it would include several downstream derivative units, increasing the overall investment significantly: the construction of a linear, low-density polyethylene unit addition, valued at $300 million, a high-density polyethylene (HDPE) unit addition, and a slurry HDPE unit addition.
Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry, said the Northeast was once the home of a large number of chemical processing facilities; but in his opinion, it no longer has the necessary infrastructure the make the Shell project feasible. Developing such an infrastructure to turn ethylene into downstream products and move them to market would be cost-prohibitive, especially given the fact that the U.S. Gulf Cast region already has such an infrastructure in place, including major port facilities and an extensive ethylene pipeline network.
Hamblet said that gas from the Marcellus Shale is now shipped to Canada, the Gulf Coast and Europe, and he expects that trend to continue.
For more information, see May 20, 2014, article - Marcellus Gas Transforms Chemical Processing, Gas Production Industries.
View Project Report - 300043738 300159929 300159923 300159934
New York leads in the number of chemical processing projects: 19, with an estimated total investment value of $700 million. The largest of these is the Syracuse Onondaga Lake Cleanup, valued at $451 million. Honeywell International (NYSE:HON) (Morristown, New Jersey), with Parsons Corporation (Pasadena, California), O'Brien & Gere Engineers (Syracuse, New York) and Sevenson Environmental Services Incorporated (Niagara Falls, New York), has been contracted to perform water treatment on about 3 billion gallons of water, dredge about 2 million cubic yards of soil from the lake, and cap about 2.8 million cubic yards of material in order to remove chemicals from a former production plant. Completion is expected by September 2017.
View Project Report - 14002948
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
