Share on: logo linkedin

PTT GC and Marubeni study US shale gas-based Ethylene plant

PTTGC assesses Tri-States ethane cracker locations

 Thailand national chemical group PTT Global Chemical plc (PTTGC) and its partner, the Japanese trading company Marubeni Corporation (Marubeni) are concentrating their investigation on the three States, Pennsylvania, West Virginia and Ohio, covering the giant Marcellus Basin to find the best location to build a world-scale ethane cracker to be fed by the competitive US shale gas.

After the international oil company (IOC) Royal Dutch Shell and the Brazilian chemical and engineering company Odebrecht, the joint venture PTTGC – Marubeni is the third group to consider an implantation in the northeast of USA for the production of ethylene and derivatives as close as possible from the Marcellus shale gas resources.

PTTGC_Marubeni_US-Shale-Gas-Ethane-Cracker_Project_MapThis location offers the second advantage to be at the core of the US manufacturing industry.

To be supported by $100 billion financing US is working actively on its Industry Renaissance program to revive its manufacturing industry.

This Industry Renaissance program will benefit from all the most advanced technologies developed within the Future of Manufacturing (FOM) initiatives across the whole country.

It will also rely on the shale gas as one of the most critical competitive key factors against the rest of the world.

The purpose is to make US the most productive location in the world for any manufacturing activity in addition to offer the largest local market.

In this context, PTTGC and Marubeni are assessing pre-selected Appalachian locations around the Marcellus Basin to develop their shale gas-based ethane cracker.

PTTGC and Marubeni identified potential locations in Pennsylvania, West Virginia and Ohio.

Allenport site in the lead for PTTGC US ethane cracker

Since this Tri-State area is not covered with the same density of transportation infrastructures as the Texas and Louisiana Gulf Coast for piping the shale gas in and carrying out the hydrocarbons production to the manufacturing market, this site selection is more critical.

In Pennsylvania, the Allenport site in the lead is a former Wheeling Pittsburg Steel facility.

PTTGC_Marubeni_US-Shale-Gas-Ethane-Cracker_ProjectWith 400 acre at 30 kilometers south of Pittsburg and a double access by barges and railways along the Monongahela River, Allenport benefits already from tax exemptions for ten years as part of the Keystone Opportunity Expansion Zone.

In Pennsylvania, West Virginia and Ohio, PTTGC and Marubeni are looking for a site that could host an ethane cracker to produce 1 million tones per year (t/y) of ethylene plus all its derivative.

Therefore the joint venture PTTGC – Marubeni is planning to invest $4 to $5 billion capital expenditure in this  US shale gas-based ethane cracker and downstream petrochemical complex in the northeast of US.

Assuming the selection of the site in 2016, PTTGC and Marubeni could expect to start the front end engineering and design (FEED) in 2017 for the first shipments to take place by 2021.

For more information about oil and gas and petrochemical projects go to Project Smart Explorer

Scroll to Top