Drilling Down

Shell Seeks Commitments on Falcon Pipeline Project

YOUNGSTOWN, Ohio – Shell Pipeline Co. LP, a subsidiary of Royal Dutch Shell, is seeking commitments from shippers to use a proposed 94-mile pipeline that would transport ethane from the Utica and Marcellus shale to the energy giant’s $6 billion cracker plant now under construction near Monaca, Pa.

The project, known as the Falcon Ethane Pipeline, will ship ethane from three supply points – Cadiz and Scio, Ohio, and Houston, Pa. – to Shell’s petrochemical plant along the Ohio River in Monaca.

According to documents posted on Shell’s website, the pipeline could be completed and in commission by 2020. It is expected that Falcon could carry pipeline capacity of 107,000 barrels of ethane per day.

Any shipper that commits to 85,000 barrels per day for a 15-year term would be considered an “anchor shipper” with certain additional rights, the company said. Interested parties are to submit binding commitments by Nov. 18, 5p.m. CST.

Shell said the location of the pipeline is key since more than 70% of the North American polyethylene market is within 700 miles of Pittsburgh.

Published by The Business Journal, Youngstown, Ohio.