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PTTGCA moves forward on Ohio project as Daelim pulls out

July 16/2020

MOSCOW (MRC) -- PTTGC (Bangkok) said it is moving forward with its much-delayed Ohio petrochemical project without its partner, Daelim Chemical USA (DCA), said Chemweek.

Toasaporn Boonyapipat, PTTGC America (PTTGCA) president and CEO, said, The Ohio petrochemical facility continues to be a top priority for PTTGC America. We are in the process of seeking a new partner whilst working toward a final investment decision [FID]. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley Region."
 
In a joint statement issued by PTTGCA and DAC, the companies said, "The COVID-19 pandemic and recent oil price volatility have caused significant impacts on businesses around the world. As a result of these factors, the Ohio petrochemical complex project being developed by PTTGC America and Daelim Chemical USA[would have encountered] a delay of about six to nine months compared to the previously announced timelineUnder this market situation, PTTGCA and DCA have been assessing the impact for major investment projects to ensure that our portfolio is well positioned for the future of petrochemical Industry. While we continue to believe in the long-term strategic importance of this project, DCA has taken the difficult but necessary decision to withdraw as equity partner from the project.
 
Despite DCAs withdrawal, PTTGCA intends to continue to develop the project and is currently in the process of seeking new potential partners with DCAs support during the transition." PTTGCA and DCA intend to work together to transition DCAs stake in the project, as well as on other business opportunities, the companies say.
 
PTTGCA and DAC were equal partners in the project planned in Mead Township, Belmont County, Ohio. PTTGC, the parent of PTTGCA, first announced plans for the project in 2015. Daelim Industrial (Seoul, South Korea), the parent of DAC, joined as a partner in 2018. Earlier this year the two companies announced a delay in making a FID on the project, which had originally been expected in the middle of 2020. This is likely to delay the completion of the project to 202728.
 
The project would be based on an ethane cracker designed to produce 1.5 million metric tons/year of ethylene using ethane from the Marcellus and Utica shale deposits. The downstream configuration is yet to be decided, especially in view of DACs withdrawal. Original plans revolved around different configurations, including for the entire ethylene output being used to make the equivalent volume of high-density and linear low-density polyethylene, or some of the ethylene used to make ethylene glycol. Most of the output would be sold on the US market.
 
PTTGC has spent about USD200 million on site preparation and engineering studies. Bechtel was selected last year as the engineering, procurement, and construction contractor on the project, for which initial costs were estimated at $56 billion. The complex would be located on the 500-acre site of a former coal-fired power plant. The site is owned by PTTGC.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim.  At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.


mrcplast.com
Author:Anna Larionova
Tags:PP, PE, ethylene, propylene, PTT Chemical.
Category:General News
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