PTT ties up with Range for ethane supply to US plant

PTT ties up with Range for ethane supply to US plant

Thailand state-owned oil and gas company PTT says that its US unit, PTT Global Chemical America’s (PTTGCA), has tied up with US oil and gas producer Range Resources Corp to supply ethane to its proposed chemical plant in Ohio. It will turn ethane into plastics. Under the agreement, Range Resources will provide 15,000 barrels per day (bpd) of ethane as feedstock for PTTGCA planned ethane cracker along the Ohio River in Belmont County.

PTTGCA said it will use the ethane to manufacture polyethylene, one of the key resins used to produce plastics products. It also said the agreement with Range is a precursor to its reaching a final investment decision to build the facility.

PTTGCA has delayed making a final investment decision to build the US$5.7 billion ethane cracker from the first half of 2020 to the first half of 2021 due to the coronavirus.

The ethane cracker is designed to produce about 1.5 million tonnes/year of ethylene and will take 4-6 years to build.

In addition, to PTTGCA’s project, Royal Dutch Shell is also building an ethane cracker nearby in western Pennsylvania.

Read: New oil and gas find for PTTEP in Malaysia

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