Which Will It Be?
States Prepare for Shell Ethane Cracker News
, The Intelligencer / Wheeling News-Register
WHEELING - Officials throughout West Virginia, Ohio and Pennsylvania are eagerly awaiting to hear which state will get the multibillion-dollar Shell Chemicals ethane cracker.
Dan Carlson, general manager of new business development for Shell, said his company would make its final decision on where to locate the large petrochemical plant in early 2012.
"We have been meeting with representatives of Pennsylvania, Ohio and West Virginia over the past few months and have had productive discussions with them," he said. "Leaders from all three states have shown great interest in having us build our cracker there. We won't comment on the proposals from the states as we continue discussions with them," Carlson added of the facility, which he said would employ 10,000 construction workers before eventually employing "several hundred" permanent chemical workers.
Shell's parent company, Royal Dutch Shell, announced plans for the cracker earlier this year, but only noted the facility would be built somewhere in Appalachia.
Carlson later declared the plant would cover hundreds of acres.
Leaders across West Virginia have been scrambling to attract the large petrochemical plant.
In addition to the direct jobs at the cracker, an American Chemistry Council study showed that gaining a cracker would help West Virginia create about 12,000 new permanent jobs in related businesses.
Initially, many believed the plant would be a good fit for the Northern Panhandle because the area is situated in the middle of the Marcellus and Utica Shale fields.
Officials with Bayer Corp. said the company's site north of New Martinsville would be a prime location because of the proximity to rail, road and water transportation. However, Bayer officials also believed a site in Institute, W.Va., near Charleston would also be prime for a cracker plant. Bayer spokesman Bryan Iams could not be reached for comment.
Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association, and Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia, each said they had heard nothing more on the cracker last week.
According to published reports, West Virginia Secretary of Commerce Keith Burdette may ask state legislators if they would vote to allow reducing personal property taxes for Shell - or any other cracker developer - to a 5 percent maximum charge for 25 years.
Existing law allows the state to reduce the personal property tax rate to 5 percent for a maximum of 10 years. Burdette could not be reached for additional comment.
Officials in Ohio have also shown great desire to attract the cracker to their side of the Ohio River. The chemistry council estimates the cracker would help the Buckeye State generate 17,000 jobs in chemistry and supplier industries, as well as $1 billion in Ohio wages and $169 million in state tax revenue.
According to Greenwire, which is a national environmental and energy news service, Ohio leaders are offering $1.4 billion in tax incentives to Shell to entice the company to locate the cracker there. Officials with Gov. John Kasich's office could not be reached for comment regarding this report.
Thomas Stewart, executive vice president of the Ohio Oil and Gas Association, said he was unaware of any new developments regarding the cracker, but expressed optimism.
"It is my fervent hope that Ohio can land this facility," he said.
"It would really do a lot to enhance the whole future of our industry here."
Dan Carlson, general manager of new business development for Shell, said his company would make its final decision on where to locate the large petrochemical plant in early 2012.
"We have been meeting with representatives of Pennsylvania, Ohio and West Virginia over the past few months and have had productive discussions with them," he said. "Leaders from all three states have shown great interest in having us build our cracker there. We won't comment on the proposals from the states as we continue discussions with them," Carlson added of the facility, which he said would employ 10,000 construction workers before eventually employing "several hundred" permanent chemical workers.
Shell's parent company, Royal Dutch Shell, announced plans for the cracker earlier this year, but only noted the facility would be built somewhere in Appalachia.
Carlson later declared the plant would cover hundreds of acres.
Leaders across West Virginia have been scrambling to attract the large petrochemical plant.
In addition to the direct jobs at the cracker, an American Chemistry Council study showed that gaining a cracker would help West Virginia create about 12,000 new permanent jobs in related businesses.
Initially, many believed the plant would be a good fit for the Northern Panhandle because the area is situated in the middle of the Marcellus and Utica Shale fields.
Officials with Bayer Corp. said the company's site north of New Martinsville would be a prime location because of the proximity to rail, road and water transportation. However, Bayer officials also believed a site in Institute, W.Va., near Charleston would also be prime for a cracker plant. Bayer spokesman Bryan Iams could not be reached for comment.
Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association, and Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia, each said they had heard nothing more on the cracker last week.
According to published reports, West Virginia Secretary of Commerce Keith Burdette may ask state legislators if they would vote to allow reducing personal property taxes for Shell - or any other cracker developer - to a 5 percent maximum charge for 25 years.
Existing law allows the state to reduce the personal property tax rate to 5 percent for a maximum of 10 years. Burdette could not be reached for additional comment.
Officials in Ohio have also shown great desire to attract the cracker to their side of the Ohio River. The chemistry council estimates the cracker would help the Buckeye State generate 17,000 jobs in chemistry and supplier industries, as well as $1 billion in Ohio wages and $169 million in state tax revenue.
According to Greenwire, which is a national environmental and energy news service, Ohio leaders are offering $1.4 billion in tax incentives to Shell to entice the company to locate the cracker there. Officials with Gov. John Kasich's office could not be reached for comment regarding this report.
Thomas Stewart, executive vice president of the Ohio Oil and Gas Association, said he was unaware of any new developments regarding the cracker, but expressed optimism.
"It is my fervent hope that Ohio can land this facility," he said.
"It would really do a lot to enhance the whole future of our industry here."
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
No comments:
Post a Comment
Hello,
I appreciate your comments regarding this blog. I welcome your suggestions and would appreciate you additions to this blog.
The focus of this blog has changed beginning October 1,2011. Logisitcs and Supply Chain dynamics will be the focus.
Our website is www.preferredlogistics.biz