Governors Wolf, Corbett, Legislators, Stakeholders Host Roundtable to Discuss Economic Impact of New Shell Plant

Press Release

Governor Tom Wolf today met with former Governor Tom Corbett, legislators, local government officials, businesses, and other stakeholders in Pittsburgh to discuss downstream economic opportunities and workforce needs following the recent announcement by Royal Dutch Shell that the company plans to build a new ethane cracker plant in Beaver County.

"It's important to recognize what this project will do for the revitalization of Pennsylvania's manufacturing industry," Governor Wolf said. "This facility will serve as the center piece in the region for the creation of new markets for polyethylene with added potential of attracting additional manufacturing investments that will lead to even more business attraction and job creation for generations to come."

"I'm proud to be part of the team that was able to bring the ethane cracker plant to Pennsylvania," said former Governor Tom Corbett. "This project will bring economic growth to Western Pennsylvania, and also proves that the commonwealth is an ideal location to grow a business and create jobs."

The discussion, which was held at JLL Center in downtown Pittsburgh, focused on the project's demand for at least 6,000 full-time construction jobs and 600 full-time permanent jobs, as well as the estimated $6 billion economic impact on the region.

"This project will have a truly positive impact on our region, and it further reinforces western Pennsylvania as a key player in the energy industry," said JC Pelusi, Market Leader, JLL. "Our firm is proud to have been part of this collaborative effort from the beginning as we helped Shell throughout the site selection process, and today's discussion with key stakeholders really underscores the importance of this private-public partnership."

Shell's Cracker Plant will be one of the largest of its kind in North America, and the largest single "from-the-ground-up' industrial investment in the Pittsburgh region in a generation. The company is expected to break ground in late 2017, with commercial production expected to begin early next decade.

"Contrary to reports, manufacturing still has a strong presence in our region. The announcement by Shell ensures that we will continue to see the growth of factory and manufacturing jobs for years to come," said Allegheny County Executive Rich Fitzgerald. "We know that there will be a significant down-stream impact due to the building of the petrochemical plant. I commend the Governor, not only for his leadership in securing this announcement, but also for his foresight in talking about workforce and other future needs."

The complex will use low-cost ethane from shale gas producers in the Marcellus and Utica basins to produce 1.6 million tons of polyethylene per year. Polyethylene is used in many products, from food packaging and containers to automotive components.

"The establishment of the cracker plant is an excellent step forward for Beaver County and Southwestern Pennsylvania," said Senator Jay Costa. This project will serve as a regional economic engine and be a catalyst for further development not only in shale but in associated industries. The new facility has the potential to create jobs and economic energy for generations to come.

"When combined with our ample shale gas reserves, the plant positions Pennsylvania to be a leader in energy development among all states. I'm grateful for the commitment from the business to work together to grow jobs, develop our regional infrastructure and invest in our communities."

"This exciting development of a new industry is being helped by state tax credits and we all have an interest in the jobs and economic benefits it will provide," said Rep. Frank Dermody. "I'm grateful to Governor Wolf for getting personally involved in making sure that the project will be done in the right way to benefit all of western Pennsylvania."

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