Daelim withdraws from Belmont County petrochemical project
DILKES BOTTOM – Daelim Chemical USA, a partner in the proposed PTT Global Chemical America ethane cracker plant project in Belmont County since 2018, has withdrawn from the project.
The announcement came in a joint statement issued Tuesday by both companies.
PTT said the change will cause a further delay in a final investment decision of about six to nine months. The company’s latest projection was to have a decision in early 2021.
“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,” according to a statement from PTTGC America President and CEO Toasaporn Boonyapipat.
The decision comes during a time of depressed oil and natural gas prices, and about a week after the Atlantic Coast Pipeline project was abandoned by Duke Energy and Dominion Energy due to ongoing pressure from environmental groups.
Both companies cited the COVID-19 pandemic and volatile markets for the break.
“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 and Daelim Chemical USA LLC 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 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 developing the project and is currently in the process of seeking new potential partners with DCA’s support during the transition.”