The Washington (PA) Observer-Reporter
PTTGC America (PTTGCA) today announced the execution of a precedent agreement with Energy Storage Ventures LLC through its wholly owned subsidiary Mountaineer NGL Storage that will provide certain necessary infrastructure for a proposed petrochemical complex in the Ohio Valley. The precedent agreement outlines the terms and conditions for the development of a natural gas liquids (NGL) storage facility that will provide storage and transportation services for the proposed PTTGCA complex. The facility will be the first underground NGL storage site in the heart of the Marcellus and Utica shale formation.
Mountaineer will develop the underground salt caverns for NGL storage on a 200-acre site in Ohio’s Monroe County. The site, owned and operated by Mountaineer, is located approximately 8 miles south of the PTTGCA project site in Dilles Bottom. PTTGCA is working with Mountaineer on 1 million barrels of ethane storage and a pipeline that will link the storage facility to the project.
“Ethane storage and transportation will be a crucial element of a world-scale petrochemical complex,” said PTTGCA President and CEO Toasaporn Boonyapipat. “Mountaineer NGL Storage will provide essential infrastructure and capabilities to our project. Our impending partnership with this first-rate organization brings us one step closer to a final investment decision. We deeply appreciate all the support we have received from our federal, state and local partners, including Belmont and Monroe counties, which have brought us to this point.”
“We are pleased to partner with PTTGCA as it works toward the development of the second petrochemical plant to be located in the Ohio River Valley,” said David Hooker, President of Mountaineer NGL Storage. “Our storage facility will have an important role in managing the plant’s supply portfolio, along with offering PTTGCA and other prospective customers an option to manage seasonal and operational demand with competitive locally priced production. The PTTGCA team has been great to work with, and we look forward to a long and successful relationship.”
The $250 million storage facility will be developed in two phases by creating multiple caverns in the existing underground salt formation. Each cavern will be capable of storing approximately 500,000 barrels of NGLs, including propane, butane, ethane and ethylene. Mountaineer has obtained all required permits to begin construction of Phase 1 of the project – approximately 1.5 million barrels – which will take two to three years to complete. An additional 1.5 million barrels is planned for Phase 2, which will bring the total capacity to approximately 3 million barrels. Additional expansion capabilities are available, subject to market demand. With the support of the State of Ohio and the local community in Monroe County, the Mountaineer project will set new standards for safely building and operating am NGL storage facility.
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PTTGC America President and CEO Toasaporn Boonyapipat made the following statement today in reference to the withdrawal of Daelim Chemical USA from the PTTGCA Ohio petrochemical project:
“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.”
The following is a joint statement from PTTGCA and Daelim Chemical USA:
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 (the “Project”) being developed by PTTGC America LLC (“PTTGCA”) and Daelim Chemical USA LLC (”DCA”) 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.
PTTGCA sincerely appreciates DCA’s contributions to the Project over the past two years, and the parties intend to continue working together, both on successfully transitioning DCA’s stake in the Project, as well as on other business opportunities.
PTTGC America today reiterated its commitment to a world-scale petrochemical complex in Ohio, unveiling an anticipated timeline of six to nine months for a final investment decision. 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.
Even with these challenges, PTTGCA is still progressing with the project and at no point put the project on indefinite hold.
“We continue to be grateful for the support and encouragement we receive from this community and all our local, state and federal partners,” said PTTGCA President and CEO Toasaporn Boonyapipat. “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.”
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If PTTGC America (PTTGCA) goes forward with a world-scale petrochemical complex in the Ohio Valley, significant revenue is guaranteed to flow to schools and local government services. As part of an economic development deal between PTTGCA and local governments, the project would invest $47.5 million over 15 years in education and other community needs while also generating more than $20 million in sales tax revenue during construction.
PTTGCA disclosed estimates of approximately 450 direct and indirect permanent jobs for the project. In addition, thousands of workers would be hired to build the plant over the four- to five-year period once it commenced.
Belmont County, Mead Township and Shadyside Schools approved Ohio Enterprise Zone Program agreements for PTTGCA today that will result in payments of $38 million to the school district over the 15-year life of the agreement. Mead Township would receive $9.5 million during the same period. Meanwhile, Belmont County is estimated to receive between $20 million and $24 million in sales tax revenue from the purchase of goods and equipment during the construction phase. The Ohio Department of Development’s Ohio Enterprise Zone Program would provide the project with a 15-year property tax exemption.
The project team appreciates the strong support of these local partners as well as Gov. Mike DeWine, Lt. Gov. Jon Husted and JobsOhio. As always, PTTGCA is extremely grateful for the enthusiasm and the patience of the Ohio Valley community.
Since mid-2019, PTTGCA’s contractors have been engaged in site preparation, engineering and design work to prepare for the possible world-scale petrochemical complex in the Ohio Valley. The first phase of this work has been successfully completed, and activity on the site will be significantly reduced for the next two or three months as PTTGCA works toward finalizing project financing and supply agreements. We will begin the next phase of this project closer to our final investment decision, which we continue to anticipate will come in the first half of this year. We thank JobsOhio, Governor Mike DeWine, Lieutenant Governor Jon Husted and the local officials of Belmont County for their continued support, and we deeply appreciate the enthusiasm and the patience of the the Ohio Valley community throughout this process.
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The Times Leader