June 17, 2020 Read More →

Experts advise against construction of Ohio plastics, petrochemicals plant

Rubber & Plastics News:

DILLES BOTTOM, Ohio—A group of engineers, economists and other professionals are advising against building a major plastics and petrochemicals plant in Ohio.

On June 15, the group sent a letter advising against the Dilles Bottom project to the governors of Ohio, Pennsylvania and West Virginia. Dilles Bottom is in close proximity to all three states.

PTT Global Chemical of Thailand and Daelim Industrial Co. of South Korea have cleared land at the site and have received $70 million in funding from Ohio, but haven’t made a final decision on the project. The project—first proposed in 2015—would include polyethylene resin production and would take advantage of low-priced shale gas feedstock that’s been developed in the region in the last decade. 

The letter to the three governors comes less than two weeks after the viability of the Shell project was challenged by a report from the Cleveland-based Institute for Energy Economics and Financial Analysis. IEEFA research is cited in the letter sent to governors.

Shell officials defended their project, saying that it’s “particularly advantaged given its proximity to customers and abundant, inexpensive feedstock.”

Houston-based Shell began construction in Monaca in late 2017. The 386-acre project will be the first U.S. petrochemicals project built outside of the Gulf Coast in several decades. The complex will use ethane from shale gas produced in the Marcellus and Utica basins to make around 3.5 billion pounds of PE resin per year.

[Frank Esposito]

More: Researchers challenge Ohio petrochemicals project

Posted in: IEEFA In the News

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