Shell Strategizes to Build Petrochemical Complex in the United States

United States: Shell Chemical Appalachia LLC, a subsidiary of Royal Dutch Shell PLC Royal Dutch Shell PLC, has given a go-ahead for the construction of the multibillion-dollar multi-billion-dollar petrochemical complex at Pennsylvania, United States. The petrochemicals facility would include one ethylene cracker as well as a polyethylene derivatives unit. The polyethylene derivatives unit would utilize shale gas derived low cost ethane from the Utica and Marcellus basins. Construction of the petrochemicals complex is expected commence in about 18 months and the commercial production would begin by the beginning of the new decade. Polyethylene produced at this facility would be used for various applications, including food packaging, manufacturing of auto-components, containers, etc.

TechSci Research depicts that increasing utilization of shale gas derived ethane would assist the growth of ethylene cracking units across the US. Consequently, strong petrochemicals industry is expected to have a positive impact on the yield of butadiene across the North American region.

According to TechSci Research report, “Global Butadiene Market Forecast and Opportunities, 2020”, global butadiene market is expected to cross 13 million metric tons in volume terms by 2020. Butadiene is obtained as a by-product during the production of ethylene and propylene by two different types of processes: Dehydrogenation and Steam cracking. The yield of butadiene is directly related to feedstock, i.e. heavier the feedstock, higher would be the butadiene yield. LyondellBasell, Royal Dutch Shell, TPC Corporation, BASF are some of the leading global players involved in the production of butadiene.