Report and Plans Released for Enhancing Petrochemicals, Plastics Manufacturing in Pennsylvania
March 31, 2017
Harrisburg, PA – Team Pennsylvania Foundation Co-Chairs Governor Tom Wolf and Stephen S. Tang, President and CEO of Philadelphia’s University City Science Center announce the release of the report from a comprehensive study conducted by IHS Markit. The study, Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing, forecasts $2.7 to 3.7 billion in investments in natural gas liquid (NGL) assets as well as the opportunity to attract additional cracker plants, and petrochemical and plastics manufacturing.
- Report – Prospects to Enhance PA’s Opportunities in Petrochemical Manufacturing
- Executive Summary – Prospects to Enhance PA’s Opportunities in Petrochemical Manufacturing
“Pennsylvania has a once-in-a-generation opportunity to develop and implement a strategy that will cultivate a manufacturing renaissance and transform our economy across the Commonwealth,” said Governor Wolf. “The foundation for building a diverse and robust petrochemical and plastics industry was initiated with the decision by Shell Pennsylvania Chemicals to invest in Pennsylvania – and we must ensure that we make the most of this chance to create good paying jobs for Pennsylvanians.”
According to the study, natural gas from the Marcellus and Utica Shale reserves accounted for a quarter of all natural gas produced in the U.S. in 2015, and is expected to account for more than 40 percent by 2030. Additionally, 40 percent of the natural gas produced is rich in natural gas liquids, or NGLs, more than 70 percent of which is ethane and propane. Ethane and propane are two important and high-value NGLs used in basic petrochemical production and plastics manufacturing.
Pennsylvania has a significant base of existing plastics manufacturers as potential customers which IHS noted will benefit from significant reductions in feedstock costs because of their close proximity to these resources.
“The prospect that the Marcellus and Utica Shale plays can support up to four additional ethane crackers beyond Shell Pennsylvania Chemicals is an exciting opportunity for the commonwealth, as is the IHS forecast that a coordinated strategy has the potential to leverage up to $3.7 billion in investment into NGL assets alone for gas processing facilities, NGL pipelines and storage facilities,” said DCED Secretary Dennis Davin. “The study is a roadmap that will help us jump start our strategy to attract that investment.”...
Read entire article at Team PA.
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