Shell Chemical is Named Among “Top Economic Development Deals” by Site Selection

by on June 6, 2017
Site Selection, the magazine of corporate real estate strategy and economic development – and a publication of Conway Data – has named the $6 billion investment by Royal Dutch Shell in a world-scale petrochemical facility in Potter Township (Beaver County), Pa. as one of top 10 North American deals of 2016.

Per the magazine, the top deals are determined “based on economic impact, competition for the project, job creation and capital investment” and “capture the essence of situational awareness [knowing what’s happening around you and making timely decisions] on both sides of the bargain.”

The top deals are diverse, but what is common ground for all of them, according to Site Selection Managing Editor Adam Bruns, is “the hunt for the right talent, resources, logistics and site – as in situation – that will make dreams come true for investors, community stakeholders and jobseekers.”

Discussing the deal with the magazine, Shell spokesman Michael Marr, noted that the deal involves a $1.65-billion tax credit, the largest in Pennsylvania history, but he underscored that “the real driver was the time commitment of state leaders to pass legislation for companies that meet certain job creation criteria.

More than 70 percent of North American polyethylene customers are within a 700-mile radius of Pittsburgh, the largest metro atop the second largest natural gas reserve (Marcellus and Utica Shales) in the world. Reflecting on the location advantage, Marr said, “There are two geographic drivers for the project: it’s close to the ethane natural gas supply and the North American customer base.”

Additionally, per Marr, support from neighboring states’ administrations and the support, in particular, from the Pittsburgh Regional Alliance, helped to close the deal.

Note: in addition to the top deals recognition for the Shell investment in Beaver County, the Pittsburgh Regional Alliance was among the honorable mentions for the Mac Conway Awards honoring top economic development organizations.