PennChem Site

The early works programme has been a significant project. Work included building bridges, relocating a state highway, improving existing interchanges, repositioning a rail line, and preparing foundations for the new complex. The site is now ready for the main construction to start.

“Today marks an important step forward for this major growth project,” said Graham van’t Hoff, Executive Vice President for Shell’s global chemicals business. “The preparation phase went well and our focus is now on ensuring first-class construction. Shell’s commercial, engineering and manufacturing expertise will help make this project a great success.”

Shell will now progress to the construction of four processing units – an ethane cracker and three polyethylene units. The ethane cracker will be the largest part of the facility with more than 200 major components and 95 miles of pipe.

Shell will also construct a 900-foot (274-metre) long cooling tower, rail and truck loading facilities, a water treatment plant, an office building and a laboratory.

The site will include a 250-megawatt natural gas-fired power plant, which will produce electricity and steam for the facility. About a third of the electricity produced will help supply the local electricity grid.

The petrochemicals complex will use ethane from shale-gas producers in the Marcellus and Utica basins to produce 1.6 million tonnes of polyethylene per year. Polyethylene is used to make many products, from food packaging and sports equipment to furniture.

The project will help bring economic growth and jobs to the region, with up to 6,000 construction workers involved in building the facility. Shell expects to create around 600 permanent employee positions when the complex is completed.

Enquiries:

Shell Media Relations
International: +44 207 934 5550
Americas: +1-832-337-4355

Notes to Editors

The site preparation programme included the movement of 7.2 million cubic yards of earthen fill. It also included the installation of 4200 steel pilings for the foundations of several permanent structures. The relocation of the existing state highway won the Quality in Construction and Operational Excellence Award from the National Asphalt Pavement Association.

Two of the PE units will manufacture high density polyethylene (HDPE) grades of pellets and the third PE unit will produce linear low density polyethylene (LLDPE) pellets.

With this investment in a new major facility, Shell is well placed to respond to increased global demand for polyethylene.

Shell’s global chemicals business sells more than 17 million metric tons of petrochemicals per year to customers, many of whom are leaders in their own fields.

Shell’s world-class integrated refining-chemicals plants are in Asia-Pacific (Singapore), Europe (Netherlands), and North America (the US Gulf Coast and Canada).

Shell operates three major petrochemical facilities in the US at Deer Park, Texas, Norco and Geismar, Louisiana, and additional chemicals manufacturing in Canada at Scotford and Sarnia. 

Shell currently produces over 500,000 tonnes of polyethylene per year through the CSPC Nanhai petrochemicals joint venture in China. See link: CNOOC and Shell take final investment decision to expand petrochemical complex in China

We draw strength from being part of an integrated energy company; we benefit from shared infrastructures, access to a variety of feedstocks, and deep manufacturing and processing expertise. This gives Shell a competitive advantage over stand-alone chemicals companies.

For more details, visit www.shell.com/chemicals.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies over which Royal Dutch Shell plc  either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively.  Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this release, November 8, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.

With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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About Shell chemicals

Shell companies first entered the chemicals industry in 1929, via a partnership in the Netherlands called NV Mekog, which manufactured ammonia from coke-oven gas.