PTT Global Chemical Plc (PTTGC), a petrochemical arm of Thailand’s leading energy group PTT Plc, expects to sign a joint venture agreement with a Japanese trading company in the third quarter, to invest in the US-based $5-billion petrochemical complex.
Patiparn Sukorndhaman, executive vice president of finance and accounting, said that it would hold at least 51 per cent stakes in the project, which is scheduled to start the construction by the end of 2016 and commence the operation in 2021.
“The partner will support us for marketing and selling the products in the United States, which is the market that we are not familiar. Normally, Japanese traders will share in each project for 20-30 per cent,” he said.
Currently, the company is doing a feasibility study that includes, project’s investment, long-term contract for securing raw material and marketing plan.
The petrochemical complex will produce olefins of one million tonnes per year to serve local demand, as well as produce other by-products such as high-density polyethylene (HDPE) of 700,000 tonnes a year and Monoethyleneglycol (MEG) and Ethyleneoxide (EO) of 600,000 tonnes a year.
“Currently, the world’s production capacity of olefins is 140 million tonnes per annum and grow by 4 per cent on average,” he said.
The company is considering three US states for location of the plant in : Ohio, West Verginia and Pensilvania, where the largest shale gas in the United States is located.
However, according to the company officials, that Ohio might be chosen as the final location.