FID stalled for PTTGC-Daelim JV’s proposed Ohio ethylene complex

PTTGC America LLC (PTTGCA), the US subsidiary of Thailand’s PTT Global Chemical (PTTGC), and partner Daelim Chemical USA LLC, a subsidiary of South Korea’s Daelim Industrial Co. Ltd., are delayed as a result of the coronavirus (COVID-19) pandemic in reaching final investment decision (FID) on the partnership’s (PTTDLM) proposed 1.5 million-tonnes/year ethane cracker and petrochemical complex planned for Mead Township along the Ohio River in Shadyside, Belmont County, Ohio (OGJ Online, Oct. 28, 2015; Apr. 22, 2015).

"While, due to circumstances beyond our control related to the pandemic, we are unable to promise a firm timeline for a [FID], we are working hard toward that decision. We pledge that we will do everything within our control to make an announcement as soon as we possibly can with the goal of bringing jobs and prosperity to the Ohio Valley," PTTDLM said.

While PTTDLM cited unidentified factors resulting from the COVID-19 health crisis as the cause of the delay, the partnership confirmed that, despite the pandemic, project leaders are continuing to work with key partners toward the project’s FID.

With the first phase of site preparation, engineering, and design work for the project completed as of late February, PTTDLM also said it now plans to continue investing in safety of the project site’s surrounding neighborhood by demolishing vacant structures.

Confirmation of delayed FID on the project follows PTTDLM’s Feb. 28 announcement that it was working toward finalizing project financing and supply agreements ahead of an anticipated FID by midyear.

According to a final air pollution permit-to-install (PTI) issued on Dec. 21, 2018, by the Ohio Environmental Protection Agency, PTTDLM’s proposed complex—which will be equipped with six ethane-cracking furnaces—will produce ethylene, high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE) using the following units and capacities:

• Ethylene plant, 1. 5 million tpy.
• HDPE Unit 1, 350,000 tpy.
• HDPE Unit 2, 350,000 tpy.
• LLDPE-HDPE Unit 1, 450,000 tpy.
• LLDPE-HDPE Unit 2, 450,000 tpy.

The proposed multi-billion-dollar complex will also include on-site railcar and truck loading, supporting utilities, infrastructure, storage tanks, logistics facilities, and installations for either production or provision of required natural gas, water, air, nitrogen, steam, and electricity to support operation of process units, according to the PTI.

Daelim officially entered as a partner on the proposed Ohio petrochemical complex in early 2018, according to a series of releases from PTTGCA.