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Shell starts operations at large Pa. ethane cracker complexfrom SNL Daily Gas Report Shell starts operations at large Pa. ethane cracker complexByline: Tim Siccion Shell Chemical Appalachia LLC began operations at a massive polymers plant in Beaver County, Pa. The Shell Polymers Monaca ethane cracker complex will produce up to 1.6 million tonnes of polyethylene per year using ethane from shale gas producers in the Marcellus and Utica basins, according to a Nov. 15 news release. Polyethylene is used to create plastics. Antero Resources Corp., a natural gas liquids producer, is contracted to supply 30,000 barrels per day of ethane to feed the cracker. Revenue from ethane sales will likely be free cash flow for Antero because the company will avoid the expense of shipping the product to a refinery in Texas, Benchmark Co. LLC analyst Subash Chandra said in a Nov. 16 note. "Incremental demand for regional NGLs should also improve realizations for other Appalachian operators who don't have firm sales agreements with the cracker," Chandra said. The Shell PLC subsidiary started building the petrochemicals complex near the Ohio River in 2017. It is expected to ramp up to full production by the second half of 2023. |
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