Range Resources signs deal to provide Pennsylvania ethane to proposed plant in Ohio
Written by Victoria Scialfa on September 29, 2020
Range Resources signs deal to provide Pennsylvania ethane to proposed plant in Ohio
By Julie Grant, The Allegheny Front
September 29, 2020
The company behind a proposed petrochemical plant in Ohio has announced a deal with a Pennsylvania natural gas supplier.
PTT-Global Chemical America, of Thailand signed a long-term ethane feedstock agreement with Range Resources.
Under the deal, Range will provide 15,000 barrels per day of ethane for PTT’s proposed ethane cracker, which will use it to make the building blocks of plastic.
Industry analyst Jennifer Van Dinter says this deal would provide PTT with less than 20 percent of the ethane it needs to run the plant. And the company will need to secure more.
“There definitely is volume in the region, it’s just based upon where we’re seeing the likelihood of it going, there’s not enough to fuel an 86,000 barrel a day cracker in the short term.”
Van Dinter says they expect the ethane produced in the region to continue to go to Canada, the Gulf Coast, and overseas, as well as to Shell’s ethane cracker when it opens in western Pennsylvania.
PTT has delayed its final decision to build the plant until next year.
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