The Wall Street Journal reported on Monday that the proposed cracker plant in Pennsylvania's Beaver County on the Ohio River may be in jeopardy.
Shell announced last March that it was eying the site for a new plant to turn ethane into ethylene, a key component of plastics.
Ohio and West Virginia had fought for the multi-billion-dollar plant.
Shell is still looking at the Pennsylvania site but no final decision has been made, the paper reported.
It said recent plans for three new pipelines to carry products from the Utica and Marcellus shale to the Gulf Coast will hurt Shell's plans.
It said the cracker plans in western Pennsylvania are fading.
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Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.