MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is establishing PTTGC America Corp. and PTTGC America LLC, both based in the US, to move forward plans for building a complex in Ohio to take advantage of low-cost ethane from shale gas, according to GV.
PTTGC has announced plans for a joint venture with Marubeni Corp., and possibly a third partner, to build a world-scale ethane cracker in Belmont County, Ohio. In addition to a 1-million-t/y ethylene cracker, the plan includes facilities to produce 700,000 t/y of high-density polyethylene, 500,000 t/y of ethylene glycol and 100,000 t/y of ethylene oxide.
The two new companies are being set up with the specific purpose of preparing for the front-end engineering design study and investing in the project.
During the first stage, PTTGC will invest in a "100% sharing interest" in PTTGC America Corp. in an amount of not more than USD 123.80-million, according to a budget approved by PTTGC’s board of directors. Then, PTTGC America Corp. will invest not more than USD 123.65-million in a "100% membership interest" in PTTGC America LLC.
PTTGC noted that a final investment decision for the complex will be based on several key factors, which include the total project cost, the ability to source ethane at a competitive price, the findings of a product distribution and marketing study, and project partners.
As MRC informed previously, Thailand's PTT Global Chemical PCL is studying several options for supplying sufficient raw material to its petrochemical plants, including imports of oil feedstocks after declines in global crude prices. The move is part of a plan to cope with a potential drop in domestic natural gas supply after Thailand's government put bidding for new oil and gas concessions on hold.
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.
MRC