Shell Chemical’s project would be boon for region

The numbers, if they turn out to be true, are mind-boggling: An investment of more than $2 billion in the ethane cracker plant; the creation of thousands of jobs tied to the construction and operation of the facility; and, the growth of related industries with price tags in the hundreds of millions of dollars and huge payrolls. It has been estimated that Shell Chemicals’ petrochemical project could ultimately mean a $5 billion windfall. That’s why Ohio, Pennsylvania and West Virginia are locked in an intense battle to win the Shell sweepstakes.

The global company is expected to make a decision on the location of the facility in the near future.

The American Chemistry Council estimates that the ethane cracker plant would generate 17,000 jobs in chemistry and other industries, as well as $1 billion in wages and $169 million in tax revenue for Ohio. This is a project that requires a concerted effort by the state’s politicians, business and industry, and community organizations. Gov. John Kasich, who met recently with Shell officials in Houston and presented them with a “comprehensive financial package,” has strong bipartisan support from Ohio’s congressional delegation and the General Assembly.

Locally, U.S. Reps. Tim Ryan of Niles, D-17th, and Bill Johnson of Marietta, R-6th, and state Sen. Minority Leader Capri Cafaro of Hubbard, D-32nd, and former state Sen. Jason Wilson of Columbiana, D-30th, signed letters to Iain Lo, vice president of New Business Development and Ventures at Shell Chemical LP, urging the company to locate the ethane cracker plant in Ohio.

While details of the project are sketchy, it is known that Eastern Ohio is under consideration because of the Marcellus shale. According to Marcellus Drilling News, in some areas of shale gas drilling, natural gas isn’t the only product that comes out of the ground. There are other chemicals called “wet gas” that are processed to extract ethane. The ethane is “cracked” into ethylene, a primary raw material used for manufacturing plastics, tires and antifreeze.

The American Chemistry Council, in a report last year, estimated the new “petrochemical” could attract up to $16 billion in private investment and create more than 17,000 jobs and billions of dollars in tax revenue for the Marcellus shale region — northern Appalachia.

The Associated Press quoted a Shell official as saying the company is also considering building several specialized plants at a related site to produce chemicals such as polyethylene, used in plastic bags, and ethylene glycol, used in antifreeze.

Steel’s rival?

C. Alan Walker, secretary of the Pennsylvania Department of Community and Economic Development, told the wire service that the ethane cracker plant and related industries could eventually rival Andrew Carnegie’s investment in the steel industry.

No one in the Mahoning Valley needs to be told what the steel industry meant to the region.

While Gov. Kasich and members of his administration are being tight-lipped about the incentive package given to the company — Pennsylvania and West Virginia are also keeping their proposals under wraps — what is known is that the Valley stands to benefit if the plant is built in this part of the state.

Local government officials and business and community leaders would do well to contact the governor’s office and offer their support for the project — if they haven’t already.