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Shell is acquiring pipeline easements along two proposed routes to feed its ethane plant near Pittsburgh Shell
PIPELINE ROUTES: Shell is acquiring pipeline easements along two proposed routes to feed its ethane plant near Pittsburgh.

Shell ‘shells out’ $75 a foot for pipeline easements

Court records suggest that Shell’s latest pipeline easement agreements in Pennsylvania will cost $75 a foot to carry ethane to its new ethane cracker facility.

Foot by foot, Shell Pipeline Co. is getting landowners in Beaver County, Pa., to sign easements for its 94-mile Falcon Ethane Pipeline. It’s a pipeline with two “legs” that will feed Shell’s ethane cracker plant now under construction at Monaca, Pa., northwest of Pittsburgh.

In early 2016, the Royal Dutch Shell affiliate began signing leases with landowners for the pipeline branches stretching into Ohio, Pennsylvania and West Virginia. See map. More easements were signed in January and May.

The latest news is that Shell has acquired another 3,183 feet. What’s different this time is how much Shell paid for those leases. The price paid works out to be $75 per foot.

According to a document filed with the Beaver County recorder of deeds, Shell paid $235,383 for the right to put its pipeline along Pittsburgh Grade Road in Greene Township. The most recent easement included 3,138 feet for the pipeline.

The 94-mile Falcon Ethane Pipeline will transport up to 107,000 barrels of ethane and other natural gas liquids to Shell’s $6 billion cracker plant along the banks of the Ohio River in Potter Township.

Shell had already acquired nearly 40 easements from Beaver County landowners, and others in Allegheny and Washington counties. It’s not clear when the easement process will be complete.

Pipeline construction would begin in late 2018. It won’t become operational until at least 2020, according to company spokespersons.

The two-leg system would have three source points within the rich-gas portions of the Marcellus and Utica shales. It would collect ethane from MarkWest Energy Partners LP’s Houston Processing and Fractionation facility in Washington County, Pa., and from its Cadiz Complex in Harrison County, Ohio. The system would also receive ethane from Utica East Ohio Midstream’s Harrison Hub fractionation plant in Scio, Ohio.

Source: Marcellus Drilling News

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