PTTGC America LLC and Daelim Chemical USA Inc said in a joint statement July 14 that the Ohio Petrochemical Complex project in Belmont County is expected to be delayed by six to nine months. Daelim Chemical is withdrawing as equity partner in the project, and PTTGC America said it was looking for another partner. A final investment decision on the ethane cracker had been expected this summer.

 

This is the second time PTTGC America has delayed the project due to the coronavirus pandemic.

 

PTTGC America President and CEO Toasaporn Boonyapipat 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. 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. We wish Daelim well and appreciate its contributions to our effort.”

 

As per the joint statement "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 LLC (PTTGCA) and Daelim Chemical USA LLC (DCA) is expected to encounter a delay of about six to nine months compared to the previously announced timeline. PTTGCA and DCA continue to take necessary actions to safeguard the health and safety of employees and to ensure business continuity."

 

Under 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 the 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 DCA’s withdrawal, PTTGCA intends to continue to develop the project and is currently in the process of seeking new potential partners with DCA’s support during the transition.

 

PTTGCA sincerely appreciates DCA’s contributions to the project over the past two years, and the parties intend to continue working together, both on successfully transitioning DCA’s stake in the project, as well as on other business opportunities.