Will Shell sell or shut its only polyethylene manufacturing site?

Shell’s plastic palace, the “brilliant basics,” and the slow-motion corporate moonwalk toward the exit

Remember when the U.S. Department of Energy promised Appalachia was “on the cusp of an energy and petrochemical renaissance,” with Shell’s ethane cracker outside Pittsburgh as “the first of what could be multiple facilities”? Yeah—about that. Five years later, Shell stands alone as the only mega-project that actually got built… and now it wants out. 

Shell’s CEO Wael Sawan told analysts, verbatim: “The issue is it’s our only one, our only major facility” making this kind of plastic. “And that’s why we’ve said we’re not the natural owner of that asset.” Translation: we spent billions building a single plastic pellet factory in Pennsylvania and, whoops, our corporate strategy is oil and gas again. Or, in his words, back to “the brilliant basics.” 

Meanwhile, the PR line is unblinking: Shell “has not announced any sale of its Monaca facility” and is merely “exploring strategic and partnership opportunities.” Sure. Also known as: anyone want to buy this thing? 

The $1.65 billion WTF tax special

Pennsylvania didn’t just roll out a red carpet; it paved the highway with cash. The state granted a record-breaking $1.65 billion tax credit that could last 25 years—the kind of deal other states stare at and whisper, we don’t do that here. Shell also blew past early cost estimates; the tab landed around $14 billion. 

And Shell has admitted the obvious about those subsidies. Back in 2016, its Appalachia petrochemicals VP Ate Vissersaid: “I can tell you, hand to my heart, that without the fiscal incentives, we would not have taken this investment decision.” (Hand. Heart. Cash.) 

The “lonely island” problem (a.k.a. why one hiccup means shut-down)

Rob Stier of S&P Global explained the strategic face-palm: “Shell is about as isolated in Pennsylvania as you can get.”If anything goes wrong, “the Shell Pennsylvania facility has to shut down… If it’s running, it makes money. But if it’s not running, they’re in trouble.” On the Gulf Coast, a company can shift production to other plants. “Shell doesn’t have that luxury because they have Pennsylvania as their only polyethylene manufacturing site in the world.” 

And yes, the market turned. China built capacity to the moon, demand cooled, and the global polyethylene party got crowded. Stier still calls Monaca “a valuable asset,” but only if the thing runs and the market cooperates. 

Malfunctions, fines, and neighbors who are over it

Monaca has been a malfunction machine. As of July 2025, Shell had filed 80 malfunction reports with Pennsylvania regulators. In 2023, Shell paid $10 million in penalties tied to air-quality violations (nearly $5 million as a civil penalty plus millions for community projects). Locals complain about light, noise, and air pollution—and some have moved away. But relax: the facility’s “anticipated lifespan” is at least 25 years. What could go wrong? 

The jobs boom that didn’t boom

State boosters once promised a petrochemical gold rush. What Beaver County actually got, per the Ohio River Valley Institute’s analysis, was a whole lot of nothing: “There was a lot of happy talk… which is not a thing that happens and hasn’t happened.” And the money quote on the scoreboard: “There’s simply no way to look at economic performance and say, ‘Beaver County got this petrochemical plant and it flourished.’ … this was a terrible investment of taxpayer money.” 

Shell’s “we never said we’re selling” dance

Image Shell’s line is that it’s just “exploring” options. But The Wall Street Journal first reported the company was exploring a potential sale of U.S. chemical facilities back in March; Reuters followed. Sawan’s “not the natural owner” comment wasn’t exactly subtle. If this isn’t a yard sale, it sure walks like one. 

Oh, and who bankrolls this party?

If you’re wondering who owns the sin stock, look at the usual financial giants. Vanguard, BlackRock, and Norges Bank Investment Management (Norway’s sovereign wealth fund) are among Shell’s largest shareholders—passive funds hoovering up the world, including one of the world’s most aggressive fossil fuel producers. They’ll be fine; they always are. 

What the f**k was the plan?

• DOE hyped a regional “renaissance.” Only Shell built. Now it’s edging toward the exit. WTF. 

• The state torched $1.65B in tax goodies to “win” a plant that may be sold a few years after startup. WTF. 

• The plant racked up malfunction reports and $10M in penalties while neighbors logged the smells, noise, and flares. WTF. 

• Shell’s CEO now preaches the church of “brilliant basics” (oil and gas), not petrochemicals—so Monaca is suddenly someone else’s “natural” asset. WTF. 

Here’s the punchline: if a Fortune 100 colossus can shrug and say “market changed,” maybe don’t wire it $1.65 billion of public money to gamble on a single-point-of-failure plastics bet. Because when the roulette ball lands wrong, the house (you) still pays—and the shareholders (hi, Vanguard/BlackRock/Norges) still get their dividends. Those are Shell’s brilliant basics.

DISCLAIMER

This article is unapologetically satirical and sharply critical—but fact-based. All quotes are reproduced exactly from verified sources, with no falsehoods. It was created by John Donovan with the assistance of AI.

Related Articles

Pennsylvania Lured Shell to the State With a $1.65 Billion Tax Break. Now the Company Wants to Sell Its Plant (Search on Google)

Shell mulls sale of European, US chemicals assets, WSJ reports

I have to live in a cocoon’: locals in Pennsylvania feel ‘sacrificed’ for Shell plastics plant

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan. There is also a Wikipedia segment.