West Virginia development officials say Odebrecht, the Brazilian company that announced plans for an ethane cracker plant near Parkersburg in 2013, no longer is involved in the long-stalled project, leaving Braskem, the company's American subsidiary, to weigh the projects viability on its own.
West Virginia Commerce Secretary Keith Burdette said Friday that Odebrecht, whose former CEO has been convicted in a political kickback scheme in Brazil, no longer is working with on the proposed ethylene production facility in Wood County, known as the Appalachian Shale Cracker Enterprise, or ASCENT.
Odebrecht bowing out, Burdette said, does not determine whether the project will occur or not. In fact, he suggested, it might not be the worst thing for the proposed plant.
"They were always going to be the people that operated the facility," Burdette said, referring to Braskem. "It is not a bad thing. It probably gives the project more focus."
George Manahan, the CEO of Manahan Group and the spokesman for Braskem, was not able to provide much information Friday.
"Given the current energy scenarios, Braskem will continue to take a prudent, deliberative approach in the development of project ASCENT," he said.
But Gov. Earl Ray Tomblin's office expressed hope that Odebrecht's exit from the project could simplify the process and lead to the plant being completed.
"Braskem was the company originally involved in the cracker discussions for the Wood County site, and the state has a longstanding relationship with the company," said Chris Stadelman, Tomblin's communications director. "Governor Tomblin and the state's Development Office remain committed to ongoing discussions with Braskem officials about the proposed ethane cracker as the company continues to monitor changes in the world energy market."
Burdette said he is frustrated that the project is still up in the air but said Royal Dutch Shell's decision last week to construct another long-awaited cracker plant in Pennsylvania could lend some credence to similar projects in the region.
"Braskem is sill doing a wait-and-see, and evaluating the marketplace," Burdette said. "It is what it is. Shell took four years to make a decision. Most of this is being caused by worldwide commodity price issues."
Braskem's site in Parkersburg, Burdette said, already is prepped and ready for the petro-chemical manufacturer to begin construction, which could help speed up the development if the company does decide to move forward.
"In a year, they could decide to move forward and be right where Shell will be," he said.
Reach Andrew Brown at andrew.brown@wvgazettemail.com, 304-348-4814 or follow @Andy_Ed_Brown on Twitter.