An extensive plastics project in Pennsylvania which has been praised by President Trump during last year visit now faces the risk of oversupply and have a hand on the low price outlook for the materials. This report was released by energy issues institute supporting the transition of green energy, the Institue for Energy Economics and Financial Analysis. Shell-owned Pennsylvania Petrochemical Complex plant located in Beaver County has been endorsed as some kind of economic saviour for the region, which still suffered from the downfall of the steel industry in the 1980’s era. The complex that absorbed $6-10 billion and expected to be in production around 2021-2022 will face headwinds from other major facilities such as Exxon Mobil’s, the slow global economy and the growth of recycled plastics.
Many people think that the future complex will be happening like the steel industry a few decades back, but the IEEFA Director of Finance and former Deputy Controller of New York State commented that such proposition is weak and a questionable economic development choice. He also hoped that local investors and official will be curious and ask questions about the plant.
Curtis Smith, Shell spokesman said that short-term looks in the business might look rough, but in the long term, demand for petrochemical products are going to grow. As the current feedstock of natural gas and ethane are inexpensive and abundant, the project is in an advantaged position.
President Donald Trump has won Pennsylvania in the 2016 election by less than 1% and has visited the state often ahead of the November vote. Trump was told thousands of building workers last August that his administration paved the path for other massive, multibillion-dollar project and it would have never happened without him. Later found the final permits of the promised project were issued before the current president was elected.
