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PTT agrees supply deal with Range for Ohio ethane cracker

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Hydrocarbon Engineering,

As reported by Reuters, PTT PCL said on Wednesday its US 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 Resources Corp.

Under the agreement, US oil and gas producer Range will provide 15 000 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 products.

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 US$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 construction.

The ethane cracker is designed to produce about 1.5 million tpy of ethylene and will take 4 – 6 years to build.

In addition, to PTTGCA’s project, Shell is building an ethane cracker nearby in western Pennsylvania.

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