Pennsylvania -- Shell has announced that it will build a multi-billion dollar petrochemical complex near Pittsburgh. It will make base chemicals and plastics from natural gas produced at the Marcellus and Utica Shale basins.
The announcement came at the same time that Shell was cutting costs and jobs due to the oil downturn. Projects at risk of being put on the back burner include a $12.3 billion Lake Charles LNG Natural Gas export in Louisiana and the Vito Deepwater project in the Gulf.
Shell noted that the Pittsburgh-area's "shorter and more dependable supply chains" make that location a better choice.
Shell CEO Ben van Beurden said that chemicals is a growth area for the company. However, Shell is in the middle of cutting $2 billion in capital spending by the end of the year.
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