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Cracker plant preparations continue despite pandemic

DILLES BOTTOM — PTT Global Chemical America and Daelim Chemical USA reached a minor milestone in their progress toward construction of an ethane cracker plant on Friday.

Project spokesman Dan Williamson said demolition of all unoccupied structures on properties that have been purchased for the potential petrochemical complex have been razed, as of Friday morning.

“We have taken down 12,” Williamson said, noting two of the purchased homes still have people living in them and, this, remain standing. He said the vacant buildings “are all down now and cleared properly and safely.”

Ohio-West Virginia Excavating, located nearby, completed the demolition work.

Despite the fact that PTTDLM recently announced that the COVID_19 pandemic and resulting global uncertainty would delay their final investment decision for six to nine months, Williamson said he believes the ongoing site work demonstrates the developers’ commitment to the plan. He also said demolition of the empty structures is further proof of the companies’ dedication to keeping the community safe.

“The project continues to invest in the community,” he said. “Although the final investment decision will not be made when we had hoped it would be, PTTDLM is still investing resources and advancing the project every way we can.

Early this month, PTTDLM released a statement noting that in the wake of a global pandemic, all companies, including PTTGCA, have been prioritizing the health and safety of employees and all stakeholders, focusing on business continuity, and taking prudent steps to navigate new challenges.

“We continue to be grateful for the support and encouragement we receive from this community and all our local, state and federal partners,” PTTGCA President and CEO Toasaporn Boonyapipat said as part of that announcement. “While the pandemic has prevented us from moving as quickly as we would like within our previous timeline, our best estimate is for a final investment decision by the end of this year or in the first quarter of next year.”

Individuals and organizations that oppose the development have said in recent weeks that the venture will not be as profitable as once believed for a variety of reasons. Bev Reed, an organizer with Concerned Ohio River Residents, issued a news release Thursday that cites a new report by the Institute for Energy Economics and Financial Analysis.

“Now is the time to focus on bringing our communities economic prosperity, and we must be careful not to invest blindly into a dying industry who will leave us worse than when we started,” Reed stated.

The report focuses on the Shell Chemical cracker plant being constructed 70 miles to the northeast in Monaca, Pennsylvania.The analysts report that profitability of the project is weakened and riskier for investors due to not just the COVID-19 pandemic, but multiple factors that existed before the pandemic, including the price of plastics falling 40-60 cents per pound since 2016. According to Reed, the report also states there is an oversupply of ethane/ethylene crackers and plastics manufacturing facilities, and a general slowing of the U.S. and global economies.

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