“Daelim” Officially Withdraws from a JV with PTTGC in U.S. Petrochem Project Worth ฿10Bn

Daelim Industrial has decided to withdraw from the planned  $10 billion project with PTT Global Chemical Public Company Limited (PTTGC) in the U.S. petrochemical complex due to prolonged coronavirus outbreak and lower oil prices.

 

A joint venture between Daelim Industrial and PTTGC is a project to build petrochemical plants including ethane cracker in Ohio by 2026, reported Yonhap News, while saying that Daelim has invested around 150 billion won or approximately USD 124 million in the past two years.

 

The U.S. West Texas Intermediate (WTI) prices dropped from the $70/bbl level in July 2018 to around $40/bbl in July 2020. Meanwhile, the international benchmark Brent Crude dropped from the $80/bbl level in July 2018 to around $42/bbl in July 2020.

The direction of oil prices is yet to be certain as OPEC and its allies tried to keep their production low, but the effort was overwhelmed by concerns over rising coronavirus cases worldwide that slowed the demand for oil down.