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PTT moves closer to decision on Ohio petrochemical plant with storage deal

July 27/2020

MOSCOW (MRC) -- State-owned Thai oil and gas company PTT Pcl said its U.S. unit took a step forward on its proposed chemical plant in Ohio that will turn ethane into plastics with an agreement to develop a natural gas liquids storage facility, reported Reuters.

PTT Global Chemical America (PTTGCA) signed an agreement with Energy Storage Ventures LLC to build a facility to store and transport natural gas liquids (NGL) for PTTGCA's proposed complex.

Our impending partnership ... brings us one step closer to a final investment decision," PTTGCA President and Chief Executive Toasaporn Boonyapipat said in a statement on Wednesday.

In June, PTTGCA said it delayed making a final investment decision to build the ethane cracker, which analysts estimate will cost USD5.7 billion, from the first half of 2020 to the first half of 2021 due to the coronavirus.

Analysts said the pandemic reduced expected growth in global demand for plastics.

Energy Storage Ventures' Mountaineer NGL Storage subsidiary will develop the underground salt caverns on a 200-acre (80-hectare) site in Ohios Monroe County about 8 miles (13 kilometers) from the PTTGCA site.

PTTGCA said it is working with Mountaineer on 1 million barrels of ethane storage and a pipeline linking the storage facility to the project.

PTTGCA said Mountaineer will develop the USD250 million storage facility in two phases by creating multiple caverns in the existing underground salt formation. Each phase will be able to hold about 1.5 million barrels.

PTTGCA said it is seeking new partners for its ethane cracker project after South Korea's Daelim Industrial Co Ltd pulled out earlier this month.

The ethane cracker is designed to produce about 1.5 million metric tons of ethylene per year and will take 4-6 years to build.

In addition, to PTTGCA's project, Royal Dutch Shell PLC is building an ethane cracker nearby in western Pennsylvania.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
Author:Margaret Volkova
Tags:PP, PE, homopolymer PP, propylene, HDPE, ethylene, Daelim, PTT Chemical, Shell, Russia, USA.
Category:General News
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