Economic Outlook & Energy
SUNDAY, FEB. 2, 2020
Economics of energy
Staff photo
The Royal Dutch Shell ethane cracker in Monaca, Pa., has sparked a dose of optimism in a region that had struggled to reinvent itself economically in recent years.
‘A wave of development and progress’ happening now By LINDA HARRIS Staff writer STEUBENVILLE — More than four years into the will-they-or-won’t-they-builda-cracker-in-Dilles-Bottom debate, Eric Peters still feels a little like a kid with his nose pressed against the candy store window. “I think that all the basic production, exploration and production was kind of an overnight thing,” said Peters, executive director of the Tyler County (W.Va.) Economic Development Authority. “But you have to realize, when you’re building infrastructure and production facilities, it takes time. It doesn’t happen overnight. Very few companies want to be the first one to put their foot in the water — but once a company makes the leap, like Shell did in Monaca, then other companies are willing to make those billion-dollar investments.” And Peters figures there are plenty of indications partners PTT Global Chemical America of Thailand and Daelim Industrial Co. of South Korea are inclined to move forward with construction of the plant, which officials on the Ohio side have predicted
“When you look at this region and what it’s been through, and to now have the opportunity for a comeback story — I don’t think you’re going to find too many folks not excited about that.” — Helen Kissick, president of the Beaver County Chamber of Commerce could cost as much as $10 billion to construct. For starters, the partners already have shelled out nearly $100 million for site preparations. “And the fact that they hired a general contractor who’s already working on a similar project leads me to believe some of the delay is logistical,” Peters said. “I think we still have a hangover from that attitude, that it’s never going to happen ... because it hasn’t happened yet. But I believe the amount of investment on the ground (is an indication), whether the company (is ready to say so) or not.” Still, Peters concedes, it’s just conjecture until PTTG and Daelim announce their decision. But 78 miles away in Monaca, Pa., there is no such uncertainty: Royal Dutch Shell began constructing its multi-billion ethane cracker two years ago and is just about ready to shift the focus
from the “vertical build” to the groundwork, filling in with miles and miles of pipelines, integrated infrastructure and facilities. “Having one plant sends a significant signal to other industries that Shell is committed to this area,” said Marvin Six, interim director of the Business Development Corp. of the Northern Panhandle. “It gives the others greater confidence, a greater sense of security for other downstream plants to come in and anchor alongside them. When you really think about it, the typical person will wait for someone else to do something (big and bold). It’s like that with industries, too. And when you have a company the size of Shell (with) the potential in Dilles Bottom, even though they haven’t made a commitment yet, I don’t see them going away.” A sense of anticipation is already building, Six said. “Brooke and Hancock counties, they’ve become a
destination for site developers,” he said. “They’re always out looking for new sites, and with this situation in Monaca and Dilles Bottom we’ve become a potential market. They’re out there looking for sites for their prospects. And, Brooke and Hancock counties are positioned in such a way that site developers see this as a market for their clients. Yes, we’re seeing an uptick in interest — and it’s across the board.” Helen Kissick, president of the Beaver County (Pa.) Chamber of Commerce, said Shell’s petrochemical project has sparked a healthy dose of optimism in a region that had struggled to reinvent itself economically in recent years. “From the chamber’s point of view it’s all about job creation,” she said. “This is the epitome of that. When a project this big comes to your area — I think somebody the other day compared it to a
meteor strike — it’s not something that comes along all that often. We’re very fortunate, very (happy) with all that Shell and its contractors are doing in this area, but that’s not what we plan for: What we want to do is make sure we foster a business climate good for all types of (growth). “Really, there’s a wave of development and progress that’s happening, and we’re doing our best to facilitate the community through that.” Six said he’s feeling it in the Northern Panhandle, too. “It picked up again right after New Year’s,” Six said. “It was like everybody was asleep through the holidays, but since then the phone’s been ringing and the e-mails flying. We’re getting inquiries for retail, warehousing and manufacturing opportunities that are not associated directly with the cracker plant. These are not industries that will be supplying anything to the cracker plant or taking anything away from it. These are industries that stand alone, they could be located anywhere. Domestic and international industries.” Brooke and Hancock counties are fast becoming a “des-
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