• CORR

CORR Press Release on PTTG Financials

For Immediate Release: March 12, 2020


Local Residents: Financial Woes Show Cracker Plant a Poor Decision for the Ohio Valley


Bridgeport, OH: Concerned Ohio River Residents reiterate that the proposed petrochemical buildout in the Ohio Valley is not economically sustainable, citing several significant recent developments including:


• the environmental permit lapse for the proposed Mountaineer Storage Project,

• the continued investment decision delay of the proposed PTT Global fossil fuel-to-plastic cracker plant in Belmont County, OH, and

• the ongoing collapse of the local and global Oil & Gas market.


We view these financial indicators, compounding the evidence of environmental and community health concerns, as further proof that the proposed Ohio Valley petrochemical buildout is an irresponsible decision.


Further community efforts and investment must be directed towards long term prosperity which involves diversifying our economy away from fossil fuels, including ethane cracker plants. On March 10, the Institute for Energy Economics and Financial Analysis (IEEFA) of Cleveland, Ohio reported that, “Mountaineer NGL storage project loses its environmental permit.” 1 This permit lapse of what would be one of the PTTG ethane cracker plant’s largest business partners further complicates the financing of the proposed PTTG cracker plant. The update states, “if this permit comes before the state agency again, a closer look regarding the sponsors’ ability to carry out the project is in order.”


This lapse and ongoing financial struggles are merely the latest indicators that the petrochemical industry is not sustainable, and should not be expanded in the Ohio Valley. PTTG recently delayed its cracker plant investment decision again, this time to Summer 2020. What’s more, the Monaca, PA cracker plant owner, Royal Dutch Shell, lost more than $25 billion in market value (down 14.1%) in a single day this week2 , while PTTG lost 24% in market value3. This follows a staggering 42 Oil and Gas companies declaring bankruptcy4

and several of the largest petrochemical companies seeing their credit ratings downgraded5

in 2019.


“When the environmental and community health concerns are considered the Oil and Gas industry is simply not sustainable, and its valuation is starting to reflect these realities,” says CORR leader, Dr. Vincent DeGeorge. “The Ohio Valley deserves a better, cleaner, and more sustainable future which includes jobs for generations to come, not the short term boom/bust volatility of the extractive and petrochemical industries that will only compound the economic, environmental, and community health problems we are already facing,” Bev Reed, CORR Organizer, Ohio Valley resident.


CORR holds regular meetings and events. Additional information and a list of upcoming events can be found on Concerned Ohio River Residents’ Facebook page and at www.nocrackerplantov.com.



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Sources:

[1] Tom Sanzillo, “IEEFA Ohio: Mountaineer NGL storage project loses its environmental permit,” Institute for Energy Economics and Financial Analysis, March 10, 2020, https://ieefa.org/ieefa-update-mountaineer-ngl-storage-project-loses-its-environmental-permit/.

[2]Sarah Hansen, “Oil Price War: BP, Royal Dutch Shell, Chevron Stocks Shed Billions After Saudis Shock With Massive Cuts,” Forbes, March 9, 2020, https://www.forbes.com/sites/sarahhansen/2020/03/09/oil-price-war-bp-royal-dutch-shell-chevron-stocks-shed-billions-after-saudis-shock-with-massive-cuts/#52d9282c4d24.

[3] Polkuamdee and Pathom Sangwongwancih, “Local energy shares free fall,” Bangkok Post, March 9, 2020, https://www.bangkokpost.com/business/1874929/local-energy-shares-free-fall.

[4] Haynesboone. “OIL PATCH BANKRUPTCY MONITOR.” Jan 17, 2020. https://www.haynesboone.com/-/media/Files/Energy_Bankruptcy_Reports/Oil_Patch_Bankruptcy_Monitor

[5] Bill Holland, “S&P downgrades ratings of six US shale gas producers, puts negative outlook on sector.” Institute for Energy Economics and Financial Analysis, Feb 5, 2020, https://ieefa.org/sp-downgrades-ratings-of-six-u-s-shale-gas-producers-puts-negative-outlook-on-sector/


https://drive.google.com/file/d/1l1cA1RnNLPqZ3Acitww2zJcHRfcm571r/view?link_id=1&can_id=29f180e249cb57b455099c0ddb354b62&source=email-pttg-cracker-plant-update-march-2020&email_referrer=email_750529&email_subject=pttg-cracker-plant-update-march-2020


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