PTTGC America’s investment in its new petrochemical complex in Ohio has been put on hold until the firm secures a new partner for the complex. According to reports, the company is currently waiting for a partner for the new petrochemical complex. Once it gets a partner, the company will reach FID.
The new petrochemical complex is the first underground NGL storage site in Utica and Marcellus. Few weeks before PTTGC announced the hold of the new complex, it had revealed that its partner Daelim had withdrawn from the project.
Dalim had entered the agreement with PTTGC in February 2018 and planned final investments decisions. The company previously aimed FID by early 2020, but the withdrawal of Daelim and the pandemic led-delays pushed the previously planned date. Now, until a partner is secured, the project will be put on hold for an indefinite period. The PTTGC project includes a 450,000 mt/year HDPE plant, a 450,000 mt/year low-density PE plant, and a 1.5 million mt/year cracker. The crude oil projects, including the expansion of the Dakota Access Pipeline, will be continued.
In his last year’s election campaign, President Joe Biden had promised to cancel the new oil and gas permits on the federal lands and waters. The campaign and his promise aimed at preventing the impact of oil and gas drilling on climate and adopt more sources of renewable energy. However, 13 US states had launched a lawsuit against the ban that aimed at overturning the ban. Thus, following the court’s order and removal of the ban against the leasing of oil and gas, the judge has permitted to carry out leasing while hearing regarding the case will continue.