Tuesday, June 7, 2016

Shell To Build Ethane Plant In Beaver, Could Qualify For $1.8 Billion State Tax Credit

Royal Dutch Shell announced Tuesday it will build an ethane cracker petrochemical plant in Beaver County, potentially qualifying for a $1.8 billion state tax credit over 28 years.
In 2012, the General Assembly passed and Gov. Corbett signed into law House Bill 761 which created a new Resource Manufacturing Tax Credit worth up to about $66 million per year over 28 years starting in December of 2016 and ending in December of 2044.
The tax credit is equal to 5 cents per gallon of ethane purchased and used in manufacturing ethylene in the Commonwealth.
To qualify for the tax credit, a company must invest at least $1 billion in a facility, create at least 2,500 full-time equivalent jobs during construction and meet other requirements.
Gov. Tom Wolf released this statement in reaction:  “Over the past four years, the Commonwealth of Pennsylvania has worked with Royal Dutch Shell to finalize plans to construct an ethane cracker plant in Western Pennsylvania, and this morning I was notified that Shell has taken the final step to move ahead with this game-changing plant and create thousands of jobs in Pennsylvania.
“The Commonwealth began its efforts on this project in 2012, and I would like to thank former Governor Tom Corbett and his Secretary of Community and Economic Development C. Alan Walker for all of their efforts to bring the plant to Western Pennsylvania.
“Since first taking office, I have worked in close collaboration with my Secretary of Community and Economic Development Dennis Davin, the Pittsburgh Regional Alliance, local officials in Western Pennsylvania, and Royal Dutch Shell to make the proposed plant a reality. The commonwealth engaged the company with the goal of creating jobs, spurring economic development, and taking the next steps to connect the energy industry with long-term, sustainable economic growth.
“My administration is committed to creating jobs in the energy industry through responsible, well-regulated extraction and long-term, creative industrial growth. We have worked to develop strategies for safe and responsible pipeline development that brings resources to markets and facilities and we have prioritized the Shell plant to show the world that Pennsylvania is a leader in energy manufacturing and downstream production.
“The success of this project is part of a much-needed, longer term plan to translate our abundant resources to make Pennsylvania a leader in downstream production. The commitment of the Shell cracker plant in Western Pennsylvania is an important step toward this goal.
“This critical effort spanned four years, and two administrations, and today I want to congratulate all of those involved, including both Republican and Democratic officials, and thank Royal Dutch Shell for providing this unique and exciting economic development opportunity to the people of Western Pennsylvania.”
Speaker of the House Mike Turzai (R-Allegheny) issued this statement: “We have consistently said that the focus on developing natural gas should be on usage in our state,” said Speaker Turzai.  “We applaud Shell for its decision to build in Beaver County, and we are very pleased that Act 85 of 2012 has led to this final development.”
“We have needed a pro-growth energy policy in Pennsylvania – one that brings family-sustaining jobs to our Commonwealth, affordable energy prices for our consumers and a real opportunity to bring energy independence to our nation,” said Turzai.
Marcellus Shale Coalition president David Spigelmyer released the following statement: “Shell’s decision to move forward with this world-class facility, which will put thousands to work across our region through utilizing clean-burning domestic natural gas for decades to come, is welcomed news, especially given the challenging market conditions.
“This investment also reflects that fact that domestic manufacturing’s potential is near limitless thanks to our abundant and stable energy supplies from natural gas.
“We look forward to continuing to work closely with our member company, Shell, and countless other stakeholders – including local businesses as well as building and construction trades – that will make this job-creating facility and its economic benefits a reality for the region and the Commonwealth.”
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