Sept 23 (Reuters) - State-owned Thai oil and gas company PTT
PCL said on Wednesday its U.S. unit took a step forward
on its proposed chemical plant in Ohio that will turn ethane
into plastics with an ethane supply agreement with Range
Under the agreement, U.S. oil and gas producer Range will
provide 15,000 barrels per day (bpd) of ethane as feedstock for
PTT Global Chemical America's (PTTGCA) planned ethane cracker
along the Ohio River in Belmont County.
PTTGCA said it will use the ethane to manufacture
polyethylene, one of the key resins used to produce plastics
PTTGCA said the agreement with Range is predicated on its
reaching a final investment decision to build the facility.
In June, PTTGCA said it delayed making a final investment
decision to build the ethane cracker, which analysts estimate
will cost $5.7 billion, from the first half of 2020 to the first
half of 2021 due to the coronavirus.
The company has said that if it were not for the
coronavirus, the plant would likely already be under
The ethane cracker is designed to produce about 1.5 million
metric tons of ethylene per year and will take 4-6 years to
In addition, to PTTGCA's project, Royal Dutch Shell PLC
is building an ethane cracker nearby in western
(Reporting by Scott DiSavino; Editing by David Gregorio)