After officials at Royal Dutch Shell announced plans in March to pull back on infrastructure projects in North America, there were some questions over what this meant for the company’s proposed world-scale ethane cracker that would be built outside of Pittsburgh, Pa. The answer appears to be that the project is still moving forward.
Ethane supplies have overwhelmed demand in recent years, which has resulted in the industry diverting volumes to other parts of the country. The midstream is finally closing in on a long-term solution for the problem.
With a step that surprised analysts and moved investors in early February, Boardwalk Pipeline Partners announced a slash to its quarterly distribution a full 81% from $2.13 per unit to 10 cents per unit. And in turn, the market’s response was swift: Unit prices plummeted 46%.