Royal Dutch Shell has unveiled plans for a $2 billion petrochemical plant northwest of Pittsburgh, where it can use natural gas supplies from the state’s enormous Marcellus shale formation. It chose Pennsylvania despite being wooed by Ohio and West Virginia.
The broader effect
The economic growth from natural gas abundance extends to companies providing supplies to the drilling boom.
On Oct. 1, Honeywell announced that it paid $525 million for a 70 percent stake in Thomas Russell, a privately held provider of technology and equipment for natural gas processing and treatment. With the acquisition, Honeywell will offer technologies and products that allow producers of shale and conventional natural gas to remove contaminants from natural gas and recover high-value natural gas liquids used for petrochemicals and fuel.
Another example: U.S. Steel. The company is churning out new pipe for natural gas drilling rigs, wells and pipelines. And as a big consumer of power, it is paying less for fuel.