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Shell Adds to US Polyethylene Capacity with Startup of its New Pennsylvania Complex
November 15, 2022

Global petroleum major Shell confirmed today that it has commenced operations at its Pennsylvania chemical project, Shell Polymers Monaca (SPM), a 1.6 million mt/yr Polyethylene manufacturing complex in the Northeastern US.

The plant will have three reactors: two gas-phase reactors and a slurry reactor, and production is expected to ramp up to full rates by the second half of 2023.

SPM also contracted most of its natural gas feedstock at Final Investment Decision from the nearby Utica and Marcellus basins, which offers shorter supply chains for customers.

The start-up of the SPM project adds to a market that has been well-supplied for much of the year up until recently.

Early industry data released for October showed domestic inventory down by just over 103 million lbs, as part of producer efforts to reduce stockpiles that have kept warehouses packed due to over production amid weak demand. October's draw from inventory also added to an estimated 815 million lb decrease since August.

By The Plastics Exchange.

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