In recent years, Shell Chemicals, a subsidiary of the global energy company Royal Dutch Shell, has withdrawn most of its plastics business. In recent days, Shell has returned in the form of a large petrochemical product. The company is currently building in the Pittsburgh area.
The project will be the first American petrochemical project to be built along the Gulf Coast in Texas and Louisiana for decades. The project will use low-cost natural gas feedstock developed in the Appalachian region. The natural gas used in this project will come from the nearby Marcellus, Utica shale area. After the construction is completed, the Shell project will have an annual capacity of 3.5 billion pounds per year of polyethylene resin.
Michael Marr, director of business integration, said: 'We are seeking to develop customer needs and customer relationships. The project is very close to the supply of raw materials and the customer base.' Marr said that most of the resins produced in the Pittsburgh area will be sold to the domestic market. He added that this geographical location will bring a competitive edge, not a competitor. 70% of the PE resin buyers and end-use product manufacturers are within a 700-mile radius of Pittsburgh.
The project will create 600 full-time jobs and 6,000 construction jobs during peak periods. Marr said that Shell has received huge support from state and local governments. He is not too worried about entering a private company that already has several suppliers. In the equity market, many of these suppliers also increased their capacity due to shale raw materials.