Shell idles cracker plant, and large workforce
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CONSTRUCTION HALTED — A view of Royal Dutch Shell's cracker plant while it was under construction last year in Beaver County. -- Celeste Van Kirk
MONACA — Construction of the ethane cracker plant in Beaver County had been going full bore since November 2017 — until now.
Royal Dutch Shell suspended work on the petrochemical project Wednesday afternoon, in an effort to contain the spread of the highly contagious coronavirus – around the plant and in the community.
At a time of social distancing, when people are to gather in groups no larger than 10, an estimated 7,000 had been working at the massive site along the Ohio River in Potter Township.
Those workers, according to a report in the Pittsburgh Post-Gazette, had been parking offsite and riding buses to the plant and congregating for daily meetings. Beaver County officials, area residents and environmental groups had been pressuring the company to temporarily halt construction.
The company said in a statement Wednesday: “In the days ahead, we will install additional mitigation measures aligned with (Centers for Disease Control and Prevention) guidance. Once complete, we will consider a phased ramp-up that allows for the continuation of safe, responsible construction activities.”
Hilary Mercer, vice president for Shell Pennsylvania Chemicals, said: “The decision to pause was not made lightly. But we feel strongly the temporary suspension of construction activities is in the best long-term interest of our workforce, nearby townships and the Commonwealth of Pennsylvania.”
Rising up on a 40-acre tract, the cracker complex is being developed on what is believed to be the largest construction site in the nation. More than 100 cranes tower above the site, across the river from Ohio. Heavy-duty vehicles are in constant motion and thousands, from across North America, are employed there.
It is a $6 billion to $10 billion endeavor that will enable Shell to take ethane from Marcellus and Utica shale gas, then heat it to convert it to polyethylene, a building block for plastics and common household goods. An estimated 1.6 million tons of polyethylene may be produced in a year there.
An abundance of that shale gas is extracted from Washington and Greene counties, which are among the top producers of the state’s 67 counties.
This is the first major cracker plant to be built in the United States outside of the Gulf Coast in two decades. A lot of work has been completed, but much has to be done before the facility is up and going. There isn’t a specific time frame for that, as Shell all along has been projecting that for the early 2020s.
Eight years have passed since Shell expressed initial interest in developing a petrochemical facility in Beaver County. Offered tax breaks by the state, the company closed on its purchase of the former Horsehead zinc smelter property in June 2015, and 12 months later, made a final decision to invest in a cracker complex on that land. Construction commenced 17 months later.
Beaver County has a longtime history of heavy industry, particularly steel. Much of that disappeared in the 1980s, however, so when Shell opted to build there, the move was hailed by many as a boost for the beleaguered Beaver Valley. It has been that, but the project has been polarizing as well. A number of nearby residents, and environmental groups, have expressed concerns about the possibility of emissions and pollution emanating from the plant.
President Donald Trump toured — and touted — the complex in mid-August, saying it “looks like the Eighth Wonder of the World.” Addressing an audience of about 5,000, many of them plant laborers paid for being there, the commander in chief claimed, “This is the largest investment in the history of Pennsylvania. We’ve released America’s energy, and we are restoring America’s heritage of building again.
“This is one of our biggest industrial projects, and it’s made possible by our clean, affordable natural gas.”
For now, like so many things in recent weeks, that project has been shut down.