PITTSBURGH, Pa. — There was another strong indication Tuesday that the Brazilian companies considering building an ethane cracker plant near Parkersburg in Wood County are going to take their time making a final decision and could decide not to build the cracker at all.
The Pittsburgh Business Times reported Tuesday Braskem and Odebrecht issued a joint-statement saying they are “re-evaluating” plans to build the cracker.
“From the beginning, we have taken a deliberate approach to Project ASCENT. Under the current energy scenarios, the original configuration of Project ASCENT needs to be re-evaluated, and a final investment decision on the project will require more diligence,” the statement said that appeared in the Pittsburgh Business Times article. “We have already begun our re-analysis and will continue to take a prudent, deliberative approach to ensure that ASCENT’s business will be successful and sustainable for the region, our shareholders, team members, industry partners and clients.”
ASCENT stands for Appalachian Shale Cracker Enterprise. The project was first announced in 2013.
The doubt has been created by lower oil prices that officials have described as lessening the advantage that would be gained by using ethane from the Marcellus shale.
The West Virginia project still has its advantages according to Braskem America CEO Fernando Musa. The Pittsburgh Business Times report said Musa told Chemical Week the compelling case for the Wood County plant is it would be close to the majority of the market for the product the ethane cracker would produce.
Both Gov. Earl Ray Tomblin and state Commerce Secretary Keith Burdette both said back in February there was no reason to doubt the project.
“The only thing that’s really changed is the fact that the price of crude oil has gone from over $100 barrel to half that price right now and, obviously, that is another source of fuel that can be used to make basically the same product,” Tomblin said at the time.
“After they engineer the plant, they’re going to look at everything. They’re going to cost it out and make their final decision. We remain optimistic and have always been optimistic,” Burdette told MetroNews in February.
Company officials said if the plant happens it won’t be until 2020.