With Royal Dutch Shell looking to take advantage of the increasing global demand for natural gas by building a strong petrochemical industry in the Appalachian Basin, the timing is right for the Marcus Hook Industrial Complex to join the party, writes Jamison Cocklin for NGI’s Shale Daily.

According to ExxonMobil’s Senior Technology Adviser, Tahmid Mizan, the global demand for natural gas liquid is expected to reach 112 million b/d by 2040. Even so, the Northeast will face strong competition from the Gulf Coast, as there are already eight new facilities being built or considered there.

While the Gulf Coast has some advantages over the Northeast, according to Mike Devanney, a retired petrochemical executive, the Northeast’s advantage is lower cost feedstock and a local market for polyethylene sales to converters.

However, building a customer base and keeping raw material in the region will be a challenge.

There are currently several area sites being considered for petrochemical, storage, refining, and other energy-related sectors. One of these is plans by Sunoco Logistics Partners to take advantage of its upcoming Mariner East 2 NGL pipeline, which could open the door for Marcus Hook to join in.

Read more about the growing demand for natural gas at NGI’s Shale Daily by clicking here.