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.
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.
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.
With 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.
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.