By Casey Junkins, Wheeling Intelligencer, September 13, 2015

Wheeling, WV — It remains to be seen if Belmont County will ultimately land the $5.7 billion PPT Global Chemical ethane cracker, but six similar projects already are under construction along the nation’s Gulf Coast, with Marcellus and Utica shale gas scheduled to provide at least a portion of their feedstock.

Industry leaders believe ethane yields from just the Marcellus and Utica fields could reach 590,000 barrels daily by 2020, which is up from none at all in 2012. That has led firms such as Exxon Mobil Chemical, Chevron Phillips Chemical, Dow Chemical and other industry giants to begin building their own ethane crackers in Texas and Louisiana.

Last week, officials with Thailand-based PTT Global Chemical said they would spend $100 million for engineering and design plans for the local ethane cracker, which they hope to build on about 500 acres of Dilles Bottom property along the Ohio River. While PTT leaders hope to make a final investment determination before the end of next year, other companies simply are not waiting.

“Shale development has provided U.S. chemical producers a double benefit as an energy source and as a key raw material to make plastics and other essential products, creating jobs and economic activity across the value chain,” Steve Pryor, president of Exxon Mobil Chemical, said.

According to Pryor, Exxon’s project at Baytown, Texas will ultimately employ about 10,000 construction workers; create 4,000 related jobs in nearby Houston communities; and create 350 permanent positions at the Baytown complex.

“These are high-paying jobs that lead to fulfilling and rewarding careers in an industry that’s vital to the American economy,” Pryor said, adding the project should generate about $90 million per year worth of tax revenue for the local areas.

Any new cracker complex would “crack” the ethane into ethylene, which is used as a basis for plastics and resins contained in items such as food packaging, textiles and pharmaceuticals.

Jennifer Scott is a spokeswoman for the Washington, D.C.-based American Chemistry Council, which is the trade group representing the chemical industry. She said there are now about 30 such cracker facilities in the U.S., with the most recent opening in 2001. “To our knowledge, a BASF/Total cracker at Port Arthur, Texas is the last new ethane cracker built in the U.S. It was started up in December 2001,” she said. “A Formosa Plastics at Point Comfort, Texas was completed in August 2001, but was shut down and restarted in early 2002.”

According to Scott, the following ethane crackers are under construction along the Gulf Coast, in addition to the Exxon project:

>>> Ethane Crackers Under Construction in U.S.
- Sasol ethane cracker complex at Westlake, La.
- Occidental Chemical/Mexichem ethane cracker at Ingleside, TX
- Formosa Plastics ethane cracker at Point Comfort, TX
- Dow Chemical ethane cracker at Freeport, TX
- Exxon Mobil Chemical ethane cracker at Baytown, TX
- Chevron Phillips Chemical ethane cracker at Baytown, TX
Source: American Chemistry Council

>>>>> Last Ethane Crackers to Open in U.S.
- BASF/Total facility in Port Arthur, Texas, – Opened in 2001
- Employs 250 workers, – Cost $1.5 billion to build
Sources: BASF Corp. and American Chemistry Council

“To our knowledge, none of the new ethane crackers is operational yet,” Scott said.

Due to the lack of an ethane cracker in the Marcellus and Utica region, many producers ship their ethane southward via the ATEX Express pipeline or similar conduits. The Sunoco Logistics Mariner East pipeline is pumping ethane eastward across Pennsylvania to the Marcus Hook Industry Complex, while the company’s Mariner West pipeline is sending the ethane across Ohio so it can go to Canada for cracking.

Scott said it usually takes about five years from the time a final investment decision to the point at which a cracker would open. She said this includes the time for the permitting process. Scott added the PTT project is “on our list of shale-related chemical industry investments.” However, Scott said her organization would decline to speculate about the viability of PTT’s plans.

“As of this month, our tally stands at 243 announced projects representing a cumulative investment of $147 billion,” she said. “Of the projects on our list, 37 percent have been completed or are currently under construction and another 54 percent are in the planning phase.”