Sep 22, 2016 3 min read

PITTSBURGH – The tri-state region’s leaders in economic development discussed their approaches to building the petrochemical industry in the area.

The topic is at the top of the list of many officials, given the June announcement by Shell that it will build an ethane cracker plant in Beaver County that will produce 3 billion pounds of polyethylene a year.

The discussion was part of the second and final day of Shale Insight, a conference sponsored by oil and gas industry coalitions from Pennsylvania, Ohio and West Virginia at the David L. Lawrence Convention Center.

Dennis Yablonsky, chief executive officer of Allegheny Conference on Community Development, noted Shell will invest more than $6 billion on the cracker plant in Monaca, requiring an average of 2,000 construction workers, with as many as 5,000 at its peak.

When finished in about three years, the plant will employ about 600 people, but its presence in the region is expected to demand the work of five times as many people in support and supply of its operations.

The plant is seen by many as a “game-changer” for the region’s economy, with the expectation it will have a $4 billion impact on the region’s economy.

“We’re starting to get interest from international plastics compounders,” Yablonsky said, adding Shell decided to build the first ethane cracker plant outside of the Gulf region because more than 70 percent of its customer base is within 700 miles of the plant site.

“This is a tremendous opportunity that Pennsylvania has right now over and above many other states,” added Dennis Davin, secretary of the state Department of Community and Economic Development.

Part of Davin’s job is to help get the word out that Pennsylvania’s abundant gas is being used in the commonwealth. He noted that Procter & Gamble operates its largest manufacturing facility in Wyoming County, and chose to run it with natural gas, because it saves $26 million per year in energy costs.

“There are 9,000 shale wells in Pennsylvania now,” Davin said, noting that the natural gas industry is currently working on about $10 billion worth of pipeline projects to get more of the gas to market.

He’s hoping much of the market will be within the boundaries of Pennsylvania.

“To the maximum extent possible, we want to use this gas in the state of Pennsylvania,” he said.

Jerry James, director of Shale Crescent USA, described a new volunteer organization formed to promote the Ohio Valley as a place to locate businesses related to the petrochemical industry.

“We need to look at Ohio, West Virginia and Pennsylvania as a world-class manufacturing area,” James said.

For Jim Gallik, training director for Ironworkers Local 3 in Pittsburgh, part of his mission is to keep his members’ skills sharp.

“Some have been with us for 10 to 15 years, and are constantly being updated on their skills,” he said.