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Shell to make final investment decision on Pennsylvania cracker in next 12 months
HOUSTON, May 4, 2016 (PCW) – Shell on Wednesday said it would make a final investment decision on its proposed ethane cracker in Pennsylvania in “less than 12 months.”
The 3 billion lb/yr cracker has been on the books for several years and continues to hold to an in-service time frame of before the end of the decade.
BP’s chief financial officer Simon Henry said during an earnings call to analysts that the Pennsylvania cracker was at the top of a very short list of green field projects that Shell was looking to pull the trigger on.
The other three are an LNG terminal at Lake Charles, another one in British Columbia and the deepwater Vito prospect in the Gulf of Mexico.
“It's highly unlikely that more than I would say two, maybe only one, but will actually go ahead in that timeframe,” Henry said. “The chemicals plant is probably the first one because of the timing of certain commitments that are already in place.”
“If it were not a $40 world, it would be probably a very easy decision. It's a very strong and robust project,” Henry added.
Shell on Wednesday also reported 1Q income of $484 million, down from the $4.43 billion seen a year ago, which the company attributed to lower commodity prices. – Samantha Hartke