South Korea’s Daelim has agreed with Thailand’s PTT Global Chemical (PTTGC) to jointly develop a proposed ethane cracker and PE complex in Ohio, USA. The project has been under development by PTTGC’s US subsidiary, PTTGC America, since 2015.

In a stock exchange filing on Jan. 30, PTTGC said the board of its US subsidiary had approved the execution of a heads of agreement with Daelim for the study, which includes the project’s front end engineering design (FEED). As part of the agreement, the companies will also try and secure sources for the project’s funding.

The complex in Mead Township, Belmont County, is set to cost around $4.5 billion and will produce 1.5 million t/y of ethylene and PE. PTTGC America said it chose the site in Ohio because of its location on the Marcellus and Utica shale reserves as well as its access to the region’s major infrastructure network.

Daelim said it plans to invest up to $131 million in the venture. Final decisions on the size of the investment and stakes in the joint venture are to be made by the end of 2018.