Developing new shale gas fields in Appalachia “may not end up being profitable” in the years ahead according to a new report. In addition, the associated petrochemical buildout that the region has pinned its hopes on as the future of natural gas is “unlikely,” the report states.
In early 2020, PTTGC delayed an investment decision, and by mid-year one of its partners – Korea’s Daelim Industrial – pulled out of the project. In February 2021, the Thai petrochemical giant delayed the project yet again as it searched around for new investing partners.
“The risks are becoming insurmountable. The price of plastics is sinking and the market is already oversupplied due to industry overbuilding and increased competition,” Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis (IEEFA), said in March 2020 after one of PTTGC’s delays.