Shell-the plastic factory, He propagated the faces oversupply risk: the energy Institute report

WASHINGTON (Reuters) – A massive Pennsylvania plastics project, and that the President, if He propagates, during a visit last year, is he risk-or oversupply-and-a-low-price-outlook-for-the-materials-a report by an Institute that explores energy issues, said on Thursday.

The Pennsylvania Petrochemical complex and a plant in Beaver County, owned by Shell, been promoted by some as an economic Savior, in a region still suffering from the decline of the steel industry in the 1980s.

But the $6 billion plant to 10 billion dollars, expected in 2021 or 2022, in the face of competition from other large plants, owned by companies such as Exxon, Mobil, expected growth in the recycling of plastics and the sluggish global economy, according to a report by the Institute for Energy Economics and Financial Analysis, support the energy transition.

“A lot of people think it is the second coming of the steel industry … but this is much too weak for a statement, and a questionable economic development-selection,” Tom Sanzillo, IEEFA’s director of finance, and the former first Deputy comptroller of the state of New York, said. Sanzillo hopes of local officials and investors are asking about the plan.

A Shell spokesman Curtis Smith said that the short-term Outlook for the chemical business was demanding, but the long-term demand for petrochemical products is growing. The project is preferably available because of its proximity to the abundant, cheap raw material, Smith said, referring to the region, the natural gas, and ethane.

He has won Pennsylvania in the 2016 elections by less than 1 percentage point, and has visited the state often, before the November vote.

“This is only the beginning,” He said, thousands of construction workers wearing yellow without zipper at the plant last August. “My administration is the clearing the way for the other massive, Multi-billion-dollar investments.” He said the project would never have happened without him, although his final permits were issued before he was elected.

The White house did not immediately respond to a request for comment.